Question

Tax strategy, divorce and selling house

Forum|Forum|6 years ago
March 6, 2020
1 reply
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I am heading towards a divorce before calendar end. I need to sell our house (jointly owned with spouse) either this calendar year or next (when I may also be paying alimony) We stayed in the house for 5 years and may get gains of upto $300,000 (realtor fees to be deducted from this), to be split equally with the spouse. I understand that upto $250,000 gains is exempt while filing single. Since I will be splitting the profit with the spouse, I can avoid taxes on the gains, right?

Not A Product Question

A

Anonymous

married couples only one needs to own home 2 out of 5 years ending on date of sale. both must occupy the house for 2 out of 5 years ending with date of sale.

can choose to file joint $500,000 exclusion or

married filing separate $250,000 each

divorce same rules except both must own the house for the period specified above

W

worldtraveler78Author

So this means that I have to pay tax on $50,000? (assuming a $300,000 gain in all)

Also, the realtor fees cannot be deducted from the profits, right?