I went through a rough divorce my lawyer and my ex-wife lawyer's agreed that she should get all of the profit from the house being sold to pay for community debt. I did strongley not agree at all to this she only paid for her debt and she kept the rest of the house money and I didn't see any improvement of my debt under my name that she was suppose to pay too. I know if I claimed her and my underaged children I wold have to pay for the profit of the house that I did not see a penny of. My ? would be if I did not claim her or my children, would she by law suppose to pay for taxes on the house being sold? Drowning in debt that she created please help me my hands are tied.
2007-02-21 06:17:03 · 4 answers · asked by Just wondering... 2 in Business & Finance ➔ Taxes ➔ United States
If the house has already sold, then the current year's taxes will be accounted for in the sale. Generally they deduct taxes from your profit and credit that amount back to the borrower. Unless the sales contract stated otherwise, the taxes were taken care of at closing. Check your HUD-1 Settlement Statement.
If you are talking about Capital Gains Tax and not Real Estate Tax, then consult your tax advisor. My guess is that if the recorded divorce decree explicitly states she gets the profit, then you'd be free from the CGT liability.
2007-02-21 06:29:09 · answer #1 · answered by Joe L 3 · 0⤊ 0⤋
If she sold the house the closing company would have to make sure that outstanding debt against the house was clear. Its the only way to make the house sellable to the mortgage company funding the purchase loan. That goes for debt attached to the house. The taxes that would be addressed would be property taxes. Personal taxes are a different story. Go talk to a good tax acct. They are worth the small fee. Sometimes you can really make a difference on your taxes.
2007-02-21 14:27:38 · answer #2 · answered by Kay N 2 · 0⤊ 0⤋
I don't follow all of this, but the good news (maybe) is that you can exclude $250,000 of gain each, if you owned the house jointly and lived in it as your main home for a total of at least 24 months during the 5 years prior to sale.
2007-02-21 14:31:54 · answer #3 · answered by r_kav 4 · 0⤊ 0⤋
She's your ex-wife. You can't claim her as a dependent. The children are claimed by the custodial parent.
If the house went to your ex, any gain on sale is her problem, not yours.
2007-02-21 14:30:49 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋