wlunnie[at]gmail.com wrote:

- quote -

It's probably capital gain. But to be sure your divorce
settlement agreement will have to be looked at. Ask your
divorce lawyer - this issue should have been considered at
the time the agreement was entered into.

Stu

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I executed a quit claim on our single family home in favor
of my spouse as part of an amicable divorce settlement
three years ago. A lien was then applied against the
property specifying that upon sale I would receive 50
percent of the equity.

The property is now on the market.

My question regards how the proceeds I receive will be
treated. If as ordinary (or other taxable) income, would I
be able to have my ex-wife hold my share of the proceeds,
annually transferring $9,999.00 to one of our children as a
gift, with that child then transferring that gift to me as a
gift? Or is there a more expedient way for me to reduce tax
liability in this situation.

I am, of course, feeling stupid for not having considered
potential tax implications when preparing the agreement.

Please copy responses to wlunnie[at]gmail.com, I am not a
regular user of usenet groups.

Thanks

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >