hilmarti[at]aol.com (Phil Marti) wrote:

- quote -

That's not necessarily so:

- quote -

===============================
Use of home after divorce.

You are considered to have used property as your main home
during any period when:

1) You owned it, and

2) Your spouse or former spouse is allowed to live in it
under a divorce or separation instrument and uses it as his
or her main home.

--ron

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Mary Susan Smith wrote:

- quote -

Puzzled here. What has the 150,000$ cash got to do with this?
Does it somehow relate to the sale of the house?

- quote -

Again, can't say unless we know what the 150,000$ is for.

Cheer$,
Harlan Lunsford, EA n LA

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"Mary Susan Smith" <marysusansmith[at]aol.com> wrote:

- quote -

Your post makes no sense, perhaps you could be a bit clearer.

Gene E. Utterback, EA

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marysusansmith[at]aol.com (Mary Susan Smith) writes:

- quote -

OK, I've read it three times and I can only guess what's
going on. You seem to be selling a house that will yield a
$700,000 capital gain split equally between you and your ex.
IF (see more later) you qualify as described in IRS Pub 523
you can exclude $250,000 of the gain leaving you with a
taxable gain of $100,000.

I wonder if you're going to meet the criteria, though. You
don't say who's been living in the house since the divorce.
If it's you, (or both of you, given your future plans)
you'll have no problem. If you were the one who moved out,
it doesn't look to me like you're going to be able to meet
the 2 of 5 years use test.

I'm totally befuddled as to what your business partner is
proposing. If it's in any was connected with disposition of
the house, how is $150,000 better than $350,000?

Phil Marti
Topeka, KS

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marysusansmith[at]aol.com (Mary Susan Smith) writes:

- quote -

That paragraph I understand. You are going to be his shack
job and you have my blessing as I approve of such
relationships.

- quote -

If I split the paragraph right there, it makes more sense.
Because you are single, you get $250,000 of the $350,000
excluded.

- quote -

So you are also selling your business for $150,000. So on
your way to Europe, you will have $500,000 in cash of which
$250,000 is excluded and you want to minimize the taxation.

Get ye to a local tax pro.

Dick

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I was married for six years and have been divorced for
three. Most people won't say this but the divorce was 100%
my fault. He now lives in Dallas, is going to relocate to
Belgium, and I am going to be his camp follower.

The profit on the house will be around $350,000. He is
adamant that he will not marry me again so I will have
$100,000 in capital gains. My business partner is offering
me $150,000 cash. That is low, but it is cash.

Given I will have no other income for 2004 or 2005, is there
any way to shelter the $150,000 from the business?

Susan

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