"lglr1976[at]yahoo.com" <lglr1976[at]yahoo.com> wrote:

- quote -

Unless it was stipulated that YOU were to buy the portion of
the home, I tend to doubt it.

- quote -

Well it sound like you bought 1/2 of the ownership of the
house. If nothing else, you cannot buy something from
yourself. In other words, YOU didn't sell anything.

- quote -

Off the top of my head, I would say he doesn't qualify for
automatic exclusion, but the divorce gives him a SMALL
exclusion based on unforeseen circumstances.

- quote -

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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I have an unusual situation that I can't find addressed in
the IRS publications. In 2004, I went through a divorce and
in the decree, it stated that the marital home was to be
sold. After the divorce was final, the house did go up for
sale, but I was able to make an offer to purchase the home
back for myself. We went through a regular closing just
like with a stranger. So I am now the owner of the house
and also the previous co-owner.

Because the sale of the house was due to a divorce, is it
considered a transfer and the sale does not have to be
reported? Or if it does have to be reported, then I have a
question about the period of living in the house. I have
lived in the house up to the time of sale for 2.5 years from
the date of our previous house sale and thus meet the
residency requirements to exclude any gain if I choose to.

My ex only lived in the house for a few months from the date
of the previous house selling and then lived another two
years in his own apartment before the divorce and the house
being sold to me. Thus it looks to me that he can't exclude
any gain since he doesn't meet the residency requirements,
or does the fact that we were still married, give him an out
on that and he can still exclude his portion of the gain.

Any answers would be much appreciated.

Also any comments on my interpretations and if they are
correct are appreciated. Thanks.

LL

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