Capital Gains Tax From Home Sale
My ex husband and I were joint tenants on a home we owned together. I moved out but he stayed and lived in the house continuously until it was sold last summer. Am I also except from the capital gains even though I didn't live there. We never rented the house and he was a resident the entire time it was owned
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Thank you for joining our community, Jeanne.
This is a complicated situation. The IRS stipulates that the house must have been lived in for 2 out of the last 5 years. If you satisfied that requirement, then you can apply the section 121 exclusion of the realized capital gain up to $250,000 for single tax payers since you became single after splitting due to divorce (ex-husband in your question).
You mentioned being Co-Owner. Did you change the ownership of the home when you moved out or completed the divorce? Did any paperwork like a 1099-S (Sale of Home) get issued in your name and Social Security number in the sale?
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I moved out and we divorced.
My name remained on the deed.
I was issued a 1099 to my name and social in the amou nt og $165,000
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I appreciate the response.
Your husband and you would have satisfied the time of living together until the separation per divorce. At that point, you would need to confirm that you satisfied the stipulation of living in the home 2 out of the last five years. If you can confirm that living time, they you qualify for the exclusion of the gain (sales proceeds minus cost). If you have been living out of the home for five years, I would say that you don't fulfill the required living time by the IRS and must recognize the full amount of gain on your taxes.
