Divorce property settlement
I recently divorced. We are supposed to split our two properties. Secondary home in Florida and condo in Illinois. We sold house in Florida for 799,000 and paid 498,000 for it. With equity we both received 230,000 when sold . I’m supposed to sell condo and split 1/2. I want to buy her out and stay here. Paid 359,000 for condo estimated at 385,000 two years later. Can I offset understood 30% capital gains on Florida sale with giving her 1/2 of estimated value of Illinois property on taxes next year.
Terry Says
No, a division of marital property is not a taxable event. So there is no offset. But if you pay her half of the current value, she should be delighted. She won’t have to pay her share of capital gains taxes (assuming it is not a personal residence where gains would be excluded anyway) so it will just be part of your divorce division.
