Tax Tips for Divorcing Homeowners

Tax Tips for Divorcing Homeowners

By: Dona DeZube

Published: January 7, 2015

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If you and your ex opt for a clean break and sell your home, each of you can typically exclude up to $250,000 in home sale profits if you’re filing as a single. Image: Liz Foreman for HouseLogic

Some divorcing homeowners end up with unanticipated tax bills when they sell their home. Find out how you can avoid being one of them.

If you’re getting divorced, your home may be the biggest asset you’ll have to divide with your soon-to-be ex. As you decide whether to sell it and split the proceeds or let one spouse live there until the last kid launches, remember there’s often a third party involved in your home sale transaction: Uncle Sam.

Keeping, selling, or continuing to share your home can each create different federal tax tabs for you and your ex-spouse. Here’s a look at the tax consequences for six of the most common situations divorcing couples face.

1.  One of you stays in the house until the kids grow up; then you sell it.  READ MORE

 

 

If you are considering purchasing or selling a home in the Charlottesville area, please allow me the opportunity to help you put the pieces together.  Virginia Gardner, Roy Wheeler Realty Co., (434) 981-0871Email Virginia

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