I recieved $19000.00 from my ex husband in our divorce. The money is my share of the equity of our house that he lives in and couldnt sell. do i need to claim this money as income and pay tax on it.
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NO, you do not need to claim this money. Even if you did have to claim it, it would be non-taxable as you would be covered by IRS Section 121 which says you can exclude up to $250K in gain on the sale of your personal residence providing you have owned and occupied for two out of the last five years. You would also meet the exception if the two years did not apply to you since you moved due to a change in circumstances (divorce). -
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