Divorce

wisclonewolf
wisclonewolf Member Posts: 1 Newcomer
in Filing my taxes

My ex spouse paid me half the value of our house as part of the divorce settlement. Do I need to claim that amount of money?

also my divorce was finalized last year last year and I officially changed my last name this year. (Including social security). Do I file my 2024 taxes in my new name or my old name?

Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 503

    Hello wisclonewolf,

    Essentially, you sold your share in the house, and you may need to report a gain. If you have lived in the house for 2 of the last 5 years and were a joint owner 2 of the last 5 years, you have a $250,000 capital gain exclusion on the sale of a main home. Report the payment on the Sale of Main Home page. Only report your share of the cost basis and proceeds. For example, let's say the house was purchased for $300,000, your share would be $150,000 of the purchase price. Then you were bought out for $250,000 for a gain of $100,000. All of that is excluded.

    You may want to contact Support with some specifics, for help while signed into your account.

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