Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 6 months ago on . Most recent reply

User Stats

12
Posts
1
Votes
James Bradley
  • New to Real Estate
  • Flint Michigan
1
Votes |
12
Posts

Selling my first home, post-divorce

James Bradley
  • New to Real Estate
  • Flint Michigan
Posted

Hi all!

I am under contract on the sale of my first home, I have owned the house for 10 years in Oakland County, MI. 

I HAVE lived in the home for 2 of the last 5 years and the reason for sale is my recent divorce. Here are some details;

Purchased: 131k in 2014 

Occupied the home until a little over 1 year ago, my ex currently lives there. Refinanced in 2017 roughly to drop PMI, lower interest rate and add my then wife to the mortgage.

Selling for 287k in August of 2024

I know that I won't have to pay capital gains tax on the profits- my question is the profit from the sale still treated like income and taxed accordingly? Or do I have literally NO tax obligation from the sale?

Thank you in advance!

James

Most Popular Reply

User Stats

186
Posts
107
Votes
Joshua Thompson
Tax & Financial Services
  • Accountant
  • Princeton, TX
107
Votes |
186
Posts
Joshua Thompson
Tax & Financial Services
  • Accountant
  • Princeton, TX
Replied

You most likely will not have a tax obligation but without knowing your full tax situation we won't be able to say that with 100% certainty. In an ideal world, you'll report the sale of the home on your personal tax return and qualify for the exclusion. At the end of the day, if it all works out, there will be no additional income shown on your tax return, you'll only be reporting the transaction for informational purposes and to prevent a notice.

  • Joshua Thompson
business profile image
Thompson Tax Group LLC
5.0 stars
24 Reviews

Loading replies...