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So long as the transaction is pursuant to a divorce decree, there is no tax consequence See publication 504, here: www.irs.gov/pub/irs-pdf/p504.pdf
There is no tax on this transfer, and the basis of your house remains unchanged. You simply get the funds from him and that's all.
But I have not been living in the house and the divorce was almost three years ago. In addition, the settlement will be over $250,000, I think
That's okay...this transfer is pursuant to a divorce
There's no tax on transfers between spouses.
I usually do my own taxes. Should I ask someone else to do it for me just to be safe?
This is not treated as a sale. It's something totally different.
You can do your own taxes, as this will not even be reported on your return
However, if you are nervous about that, you can certainly have someone take a look.
Ok, thanks. I heard so many different answers from friends. I guess I freaked out
That's fine. There's nothing to worry about.
You can read all about this in the publication I linked to you
But how will I explain the big amount of cash?
You don't have to explain it to the IRS
Even if you did, just showing them the paperwork on the settlement would be enough
All right. Thanks,Megan. Have a good weekend.
You too. If you would please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today
I will. by the way, do i have to sign up the monthly fee for this?
No, you do not have to have a monthly fee. I'm not showing that you purchased a subscription, so you will not be charged monthly