Sale of Principal Residence after Divorce: 2019 Tax Law
Sale of Principal Residence after Divorce: 2019 Tax Law: IRS Publication 504, Divorced or Separated Individuals is one of our favorite reference sources for tax issues relevant to our divorced or separated clients.
Who Claims House on Taxes if Divorced? Can capital gains split between spouses? Capital Gains Tax When You Sell Your House at Divorce.
Mason Comment 1: Although I am a CPA, I hire a CPA to do my taxes. Why? I can’t keep up with all of the changes in tax law. I have to worry about keeping up with divorce law. That’s enough for me. And, for you CPA’s, my accounting experience was in audit, not tax. I hope that makes sense.
Mason Comment 2: As you may know, we love IRS Publication 504 Divorced or Separated Individuals – 2019. It’s our “Cliff Notes” for our divorced and separated clients. Below are some quotes from that publication. Keep in mind the publication changes every year, so if these links are broken, there is likely a more recent version available. In future years, we may just make new pages and not update this one.
Sale of Jointly-Owned Property
If you sell property that you and your spouse own jointly, you must report your share of the recognized gain or loss on your income tax return for the year of the sale. Your share of the gain or loss is determined by your state law governing ownership of property. For information on reporting gain or loss, see Pub. 544.
Sale of home. If you sold your main home, you may be able to exclude up to $250,000 (up to $500,000 if you and your spouse file a joint return) of gain on the sale. For more information, including special rules that apply to separated and divorced individuals selling a main home, see Pub. 523, Selling Your Home.
Divorce & Taxes: Your 2019 Update
See Miles Mason, Sr.’s article which was the cover story for the Tennessee Bar Journal: Who Gets the Credit? Calculating the New Child Tax Credits in Your Parenting Plan.
See our Tennessee Family Law Blog post series on Divorce & Taxes 2019:
- IRS “Reminders” for Divorced or Separated Individuals
- IRS Requirements to Deduct Alimony on Your Tax Return
- General Tax Rules for Alimony After Divorce
- If You Qualify, You Want to File as Head of Household After Divorce
- 2019 Tax Law: Transfer of Property in a Divorce Settlement
- Are legal fees for divorce tax deductible in 2019?
- Dividing an IRA: 2019 Tax & Divorce Law
- Who Pays the Taxes on a QDRO Distribution after Divorce?
- Sale of Principal Residence after Divorce: 2019 Tax Law
- Assignment of Estimated Tax Payments in a Divorce
