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January 17, 2023
Question

I got money from my ex-husband for our condo. what form should I use

  • January 17, 2023
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January 17, 2023

The general rule is that money transferred between ex-spouses as part of a divorce settlement is not taxable to the recipient and not deductible to the payer.

 

      Property Settlements    IRS Publication 504 page 19

 

      Generally, there is no recognized gain or loss on the transfer of property between spouses, or between former spouses if the transfer is because of a divorce.

 

 

But we do not know your specific situation.  We do not know which state law governs the divorce settlement.  We do not know what the written divorce settlement states.

 

Alimony payments (spousal support) may or may not be reported as income based upon whether the divorce or separation agreement was executed by December 31, 2018.

 

Qualified retirement plan distributions made to an alternate payee  under a qualified domestic relations order (QDRO) is likely taxable income but may not be subject to the 10% penalty for early distributions.

 

 

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