Home sales [profit] tax. My 'X' moved out 38 months before our home was sold. Does she owe tax on the "profit". I lived there, Do i owe tax on the profit. [seperate returns] Divorced when it was sold. How do i 'turn her in'? If she does owe.
Keith
by 
kasman572
ANSWERS: 2
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If your X was still an owner of the house when it was sold she will owe taxes as well unless you have a prenuptial agreement that the house was completely yours. If you sell your house, the capital gain can be deferred or avoided if you purchase, construct or renovate a home of similar value within usually 60-90 days. The IRS will catch up to her eventually so you don't need to turn her in.
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There are special rules when a divorced couple sell a home and one moved out due to a divorce.She just may still get the exclusion! And you are not saying how much profit there was, so can't tell you and/or your X have any taxes owing or not. I would suggest you see an Enrolled Agent (look in the yellow pages!) who can help you muddle thru this.
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