How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 38451
Experience:  Retired (mostly)
10097515
Type Your Tax Question Here...
socrateaser is online now
A new question is answered every 9 seconds

How will capital gains on the sale of a house be treated in

This answer was rated:

How will capital gains on the sale of a house be treated in the divorce ? Thank you. Anyone there??

Hello,

The division of marital assets is nontaxable, so no matter how the proceeds of sale are divided, there is no tax on the transfer between spouses. And, since married persons are entitled to a $500,000 exclusion from capital gains, divorced parties are each entitled to a $250,000 exclusion (assuming they have lived in the property at least 2 years out of the last 5 before sale), and as Washington is a community property state, so each spouse is entitled to one half of the proceeds of sale -- the only tax that would be incurred on sale would be if the property yields more than $500,000 in net proceeds, and then each spouse would be liable for the tax at either their joint effective tax rate, if spouses file jointly, and at their separate tax rate if they file separately, or as single.

 

If nothing in the above meets with your unique circumstances, feel free to explain exactly what the situation is, and I'll try to be more precise.

Hope this helps.

socrateaser and other Tax Specialists are ready to help you