1

My ex boyfriend (of 6 years) and I co-owned a property we bought less than two years ago.

Upon our split...

We agreed that I would refinance the property, and buy him out (approx 150, 000)-removing his name from the title at close.

Is the money he rec'd from the buyout (since we owned the property less than 2 years) subject to capital gains?

Is the money considered taxable or reportable "income"?

Sharon
  • 11
  • 1

1 Answers1

-1

Single homeowners, such as your ex, can exclude $250k from capital gains taxation. But he would have had to live in the home for 2 of the last 5 years.

He didn't reach the 2 year mark, so he doesn't qualify for a full exclusion. He might qualify for a partial exclusion, though. See the linked IRS publication.

Orange Coast- reinstate Monica
  • 7,990
  • 11
  • 22
  • 1
    This looks specific to USA. Other jurisdictions have different rules, so it might be better to wait for the OP to specify a location. – Lawrence Sep 03 '21 at 06:05