Tag: property division

Maximizing Tax Benefits for Selling the Home After Kids Grow Up

Divorce doesn’t have to destroy the kids. There are options out there, and they’re not to blame. So it just so happens that many divorcing couples find the option to keep the home when dealing with a divorce until those kids move out when they’re older. There’s a specific reason to doing this, in that it’s not going to be a forever thing when owning the home indefinitely — eventually, that home will get sold!

The Tax Benefits Are Obvious, But Keep This Important Point in Mind….divorce tax-5

If you’re going to sell that home later on, make sure you get that attorney on your side to stipulate in the divorce agreement that the home still is your “main residence” for tax purposes. The law states that you won’t get the tax benefits of selling the home if you’re not living in the home for at least two of the last five years of that primary residence.

So if the son and daughter are only in their teen years, and you’ve moved out, selling the home leaves you high and dry while the ex-spouse reaps the tax benefits. Therefore make a point to research with the Income Tax Planning Network and find out what you need to do to settle the issue correctly.

Because Selling a Home Can Be a Benefit

Tax benefit, to be exact. It just takes timing. And divorce is anything but timely. Make it a point to sign up with ITPN and talk to an expert immediately. Get the lawyer, too, while you’re at it. Divorce doesn’t have to destroy the finances, especially when you’re facing the issue of selling that home. Either you sell the home and make anywhere around $250K in profit, or you’re not paying attention to those tax laws and have to fork over a ton of that profit to the IRS. You pick.

The post Maximizing Tax Benefits for Selling the Home After Kids Grow Up appeared first on Your Rent-to-Own Consultants.

Should Your Ex-Spouse Buy the Home From You for Tax Reasons?

The answer could very well be yes — for obvious tax reasons. Now we’re not saying, though, that taxes will benefit the buyer in this case. Rather, this will be a mutual benefit in selling the home during a divorce, and here’s why:

Being Free and Clear of the Obligations

The situation has to fit; we’ll say that much. As there are plenty of divorce tax options regarding the home divorce tax-4to choose from.

Let’s say you want to keep the house. Your ex-spouse understands that and has no problems leaving except for the fact that you’re going to have to pay up some money to own the house solely on your own. In essence, you’re buying off your ex-spouse by paying his/her share of the ownership.

Tax reasons in this situation require some negotiation, though — a fair price has to be agreed upon by both parties, and once both sign on the dotted line, the one selling the share of the home gets that name removed off the deed. On the one hand, if you’re buying, you’re paying up extra money; however, guess what: that property’s all yours. On the other hand, if you’re selling, you’re getting some money in your pocket; this does mean, though, you absolutely have to move out.

Now keep in mind that negotiations don’t necessarily have to end up clear across the middle. Oftentimes divorced couples will negotiate on a buyout price that reflects the income. It’s a fair price; not an equitable one.

You Benefit Through Tax Reasons in This Way….

As in, you don’t pay any taxes as a result of the buyout, saving you some tax trouble down the road. Of course, the negotiations can require some legal planning, which you can sign up for right here; and, of course, you’re going to want to consult with an expert from the Income Tax Planning Network immediately.

Don’t hesitate. Do it now. That divorce shouldn’t have to drag out too much.