Is the transfer of the house taxable in a divorce settlement taxable?

Is the transfer of the house taxable in a divorce settlement taxable?

There is no recognized gain or loss on the transfer of property (including your house) between spouses, or between former spouses, if the transfer is incident to the divorce. Once again, there are special rules for nonresident aliens, certain transfers in trust and certain stock redemptions. Also, if you sell property that you own jointly and split the proceeds as part of your property settlement, certain tax rules apply. If the spouse who receives the home pursuant to a divorce decree subsequently sells the residence, he/she may be eligible to exclude up to $250,000 of the gain on the sale (www.irs.gov, publication 523).

By | 2017-06-14T08:52:07+00:00 June 14th, 2017|0 Comments

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