Capital Gains Tax Question
My ex-wife and I are getting ready to sell our house that we have owned for about 5 1/2 years. We bought the house after we were divorced under the impression that we were working things out for our daughter and going to get remarried....Well that didn't happen and I moved out 6 months after we bought the house. She has been living in the house the whole time. There is about 20k in equity before realtor commission and closing costs...so about 15k I'll get most of it about 75%. Do I have to worry about capital gains tax here? We're both on the mortgage and title, she just been living there not me.
Any input would be great.
Thanks,
Scott 
Yes, it is something that you need to look into. You did not live there long enough to qualify for Section 121 exclusion. I don't know if you have been depreciating the property, but you may be subject to depreciation recapture at 25%, Federal Capital Gain taxes of up to 15% and potentially state capital gain taxes, if applicable. If you have been reporting it as an investment property, you would qualify for 1031 exchange treatment, but there are a number of unanswered questions yet, so I'm not sure. I would be happy to chat in more detail, just IM me.
[addsig]