I have a client who owns a building with his ex wife. They sell the building., I put the sale of building on his tax return. Where would I put the split of the proceeds, so he is not hit with all the capital gains? Also, om her return where would I put sale of building? Do I have to divide everything in half and report half on each tax return?
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Was there one or two 1099s for the sale? Did each get half of the proceeds?"Taxation is the price we pay for failing to build a civilized society." ~ Mark Skousen -
No 1099's just a purchase agreementComment
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Both listed as sellers? Each got half the proceeds? Each owned half the building?Comment
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"Do I have to divide everything in half and report half on each tax return?"
Most likely yes. But you haven't specified what the building was being used for or how it was acquired -- has it been depreciated? Is it separate property (or community)? Lots of details to work through to make sure the proper gain/loss is being accounted for -- just basic due diligence.
Are you preparing both returns? Is there a (potential) conflict of interest? If not, and if both parties agree it is 50-50 split, just do it."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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the building was acquired in 1984. It has been fully depreciated. It was use for manufacturing. When the building was aquired they were still married and both owned the building. Yes, i am doing both returns. They came in together to drop off their tax documents.
Do I split everything in half and have a sale of business asset on both returns
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"Do I split everything in half and have a sale of business asset on both returns"
Like I said before, yes. Any other approach would be needlessly complicated.Last edited by Rapid Robert; 03-23-2024, 06:58 PM."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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In description of property sale you should note "50% owner".This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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