Posted on: 04th Apr, 2010 03:24 pm
hi
my husband and i bought our home 6 years ago. we divorced last october. our agreement was to sell the home and split the proceeds.
i now have an employment opportunity in another county and my ex has stated he would like me to quit claim and he will buy out my share of the home. our house is currently listed for $189,500.00. my ex thinks that when a price is agreed on, he will refinance but my proceeds will be less a capital gains tax and closing costs.
so my question is.... am i responsible to pay capital gains tax and closing costs?
let's say our agreed "selling" price of our home is $180.000.00 our existing loan balance is $133,000.00, this would be a profit of $47000.00 divided by 2 = $23500.00.
can you help me understand how this should work... i am so ready to move on!
my husband and i bought our home 6 years ago. we divorced last october. our agreement was to sell the home and split the proceeds.
i now have an employment opportunity in another county and my ex has stated he would like me to quit claim and he will buy out my share of the home. our house is currently listed for $189,500.00. my ex thinks that when a price is agreed on, he will refinance but my proceeds will be less a capital gains tax and closing costs.
so my question is.... am i responsible to pay capital gains tax and closing costs?
let's say our agreed "selling" price of our home is $180.000.00 our existing loan balance is $133,000.00, this would be a profit of $47000.00 divided by 2 = $23500.00.
can you help me understand how this should work... i am so ready to move on!
Hi cakegirltoo,
If there is a profit from the sale of the property, then both of you would be responsible for paying the capital gains taxes. The profit will depend upon the difference between the purchase price of the property and the present selling price. If there is a profit, then you're responsible for the deficient balance. You can contact a tax adviser and he would be able to guide you in a better way in this regard.
If there is a profit from the sale of the property, then both of you would be responsible for paying the capital gains taxes. The profit will depend upon the difference between the purchase price of the property and the present selling price. If there is a profit, then you're responsible for the deficient balance. You can contact a tax adviser and he would be able to guide you in a better way in this regard.