Divorce And Capital Gains
I purchased a home 16 months ago and have had decent size appreciation on it. I am now going through a divorce and need to sell it, is their an exclusion or something for that type of situation. If so where would i read about it or what are the conditions.
Since the mortgage is paid from the income generated by the property, you may each claim a proportionate share of the income and expenses on your respective Schedule Es. Percentage of ownership is usually the basis for allocating income and expenses, to include depreciation. But, if you have a partnership agreement to allocate in a different ratio, then go ahead. I would document your agreement, with signatures, for your private records. Each time the agreement changes, document it.
As I understand the home mortgage interest deduction, only the person who pays the interest can take the deduction, AND only if that person itemizes on Schedule A.
blueford, reason enough right there with the mortgage interest. thanks.