We just made 10k profit on the sale of a home. My S/O's ex-wife has been living in the home ( they owned ) for a little more then 4 years since their divorce.
We own our own home... sooo
How should he go about avoiding paying ridiculous taxes on this money? Can he still claim the sale as a sold primary home on his 1040? What's the best way to handle the income?
2007-06-11 07:54:01 · 3 answers · asked by C S 3 in Business & Finance ➔ Renting & Real Estate
His ex-wife and their kids were living in the home up to the sale of the house.
2007-06-11 08:05:05 · update #1
yes, as long as the primary owners used that house as a main residence for 2 of the last 5 years it counts ..
Good luck!
2007-06-18 09:31:47 · answer #1 · answered by Miss Know It All 6 · 6⤊ 0⤋
Tough one, if he hasn't been filing that address on his taxes then how could he argue that the house was his primary home? You usually have your taxes filed with the address of your primary home!
Ask a tax professional, BUT I think capital gains are in order here. Should have considered living there before selling it (2 and a half years I believe).
2007-06-11 15:03:36 · answer #2 · answered by me4tennessee 6 · 0⤊ 1⤋
Sounds complicated enough that calling a tax attorney might be your best bet.
2007-06-14 12:32:35 · answer #3 · answered by SoccerClipCincy 7 · 0⤊ 1⤋