Advise needed - selling rental property capital gains
Wonder if anyone can help. I'm having trouble on how to report capital gains on my tax form. See details below.
My (ex)wife and I separated last year and sold our rental property. We split the profit 50/50. We always had joint ownership and shared half of the profits/losses each year (as reported on each of our yearly taxes).
The property was sold for $400k, bought for $200k. I'll keep the math simple so i won't include legal fees, realtor ... etc.
Now on my tax forms do I claim the property sold for $200k and bought for $100k? For property gains of approx $25k. This seems like the simplest method for me as my ex would do the same and the full gains tax is paid. And we were always joint owners.
Or does one of us need to claim the full amount (sold and bought) and provide some tax form to the other person for 1/2 of the gains tax? This seems unnecessarily complicated.
I'm going to use StudioTax and she is going to her own software (turbotax?).
Any suggestion would be appreciated as I cannot find anything like this example on the net.
My (ex)wife and I separated last year and sold our rental property. We split the profit 50/50. We always had joint ownership and shared half of the profits/losses each year (as reported on each of our yearly taxes).
The property was sold for $400k, bought for $200k. I'll keep the math simple so i won't include legal fees, realtor ... etc.
Now on my tax forms do I claim the property sold for $200k and bought for $100k? For property gains of approx $25k. This seems like the simplest method for me as my ex would do the same and the full gains tax is paid. And we were always joint owners.
Or does one of us need to claim the full amount (sold and bought) and provide some tax form to the other person for 1/2 of the gains tax? This seems unnecessarily complicated.
I'm going to use StudioTax and she is going to her own software (turbotax?).
Any suggestion would be appreciated as I cannot find anything like this example on the net.