Odd Tax Question (separated/divorced people help!!)

[arch01]

DH and I sold our house in July. We both bought separate houses. We are separated but can't file until August of this year due to NC's year of being separated rule.

I usually do our taxes on TaxAct. I need to get started this week-but what in the world do I do with this? I know from previous experience we put all the info in-but I feel like 2 purchases as primary residences is going to send big red flags. We still have to file as married, and MFJ makes the most sense for us. There's no requirement for us to do MFS, but I feel like with this situation we almost may have to.

Has anyone been down this road? Am I over thinking this? Our taxes are otherwise pretty simple, so I really don't want to have to go pay someone.

[stategirl08]

I’m a CPA in NC and maybe I’m missing something, but why would two purchases matter? You would just report total mortgage interest and property taxes paid.

And assuming you didn’t have a gain of >$250k in the sale of the joint residence, then that won’t matter at all.

[jwright]

Agreed; you deduct the mortgage interest on Schedule A and the only potential issue would be if the total value of the debt is over $1.1M. It's as if you bought a primary residence and second home; interest for both is deducted in the same place.

[dancelnow]

I would do MFJ as long as it’s amicable and he’ll cooperate. The two houses isn’t an issue.

And definitely make sure everything is divided and names taken off accounts ASAP. I’m in a tax mess because my ex hasn’t moved his part of our investment account to his own name and now I got a tax form for gains that I don’t own the investment

[arch01]

Feb 20, 2018 8:36:39 GMT -5 dancelnow said:

I would do MFJ as long as it’s amicable and he’ll cooperate. The two houses isn’t an issue.

And definitely make sure everything is divided and names taken off accounts ASAP. I’m in a tax mess because my ex hasn’t moved his part of our investment account to his own name and now I got a tax form for gains that I don’t own the investment

We separated everything last year, all that’s left is the taxes and the final divorce papers. We were very thorough in our separation paperwork with assets, so we should be set.

[arch01]

Feb 19, 2018 16:23:52 GMT -5 stategirl08 said:

I’m a CPA in NC and maybe I’m missing something, but why would two purchases matter? You would just report total mortgage interest and property taxes paid.

And assuming you didn’t have a gain of >$250k in the sale of the joint residence, then that won’t matter at all.

Thanks-in my head I was afraid it would appear as a second home, which we never had-and that would have implications. I was afraid I was overthinking this 😕

[stategirl08]

Feb 20, 2018 10:11:17 GMT -5 arch01 said:

Feb 19, 2018 16:23:52 GMT -5 stategirl08 said:

I’m a CPA in NC and maybe I’m missing something, but why would two purchases matter? You would just report total mortgage interest and property taxes paid.

And assuming you didn’t have a gain of >$250k in the sale of the joint residence, then that won’t matter at all.

Thanks-in my head I was afraid it would appear as a second home, which we never had-and that would have implications. I was afraid I was overthinking this 😕

No worries! It can seem complicated . Good luck getting everything finalized!

[LoveTrains]

Hopefully no one steals your refund this year!

[arch01]

Feb 21, 2018 0:11:43 GMT -5 LoveTrains said:

Hopefully no one steals your refund this year!

Right?! One thing I am not going to miss: having to have an IRS PIN to get my return filed!