Married couple got divorced in 2018. The divorce agreement stipulated 2 or 3 ways the marital home could be dealt with. The one that is coming to be is the woman who is living in the home is going to refinance the loan, borrowing say an extra $150,000 to buy out the man's ownership share. To me this is a transfer incident to a divorce. The man has no gain to report and the woman is no able to deduct any of the interest on the $150,000 as she did not buy him out. Any other ways to view this?
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TTB 12-11
Property Settlements
Cross References
•IRS Pub. 504 Divorced or Separated Individuals
•IRC ยง1041 Transfers of property between spouses or incident to divorce
If you have the TTB Web Library see:
Occupations & Oddities - 2019 Tax Year
See tab 12 - Divorced or Separated Individuals - in depth information - covered well.Last edited by TAXNJ; 07-20-2020, 04:05 PM.Always cite your source for support to defend your opinion
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