Have a Tax Question? Ask a Tax Expert
First, would you please clarify whether the property was part of the property settlement?
If so this will determine the basis for the capital gain here ... and remember capital gain is sales price minus basis (basis being your purchase price plus any improvements)
The check you received may be more about difference in sale price and loan amount ... but the loan amount doesn't affect basis, it's just how you FINANCED that purchase.
And again, the amounts that were delineated in the divorce decree will help with both basis (property settlement basis is what's called carry-over basis, its the same as if one spouse gifted the asset or a portion of an asset to the other spouse) and tax treatment all around.
Also, who was on the deed for the property? This will drive part of the answer as well
Lots to talk about here
If you'd like I can make what's called an additional services offer so that we can discuss over the phone ... might be more efficient