Discussion:1031 Exchange: Divorcing couple
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Discussion Forum Index --> Tax Questions --> 1031 Exchange: Divorcing couple
| 9 May 2008 | |
| I represent one spouse of a couple in the process of getting a divorce that owns an investment property as joint tenants.
Assuming they sell the property before the divorce is final (while still owning it as joint tenants), and further assuming they are still legally married as of the end of the year and file their respective personal income tax returns "married filing separately", is there any reason my client cannot treat the sale of her 1/2 interest as part of a 1031 exchange (assuming she complies with all other 1031 requirements) if the husband does not elect to do a 1031 exchange? | |
| 10 May 2008 | |
| This seems like a legal question. Tenants in common may work better than JWROS. States vary, so I'd check with an attorney. | |
RoyDaleOne (talk|edits) said: | 10 May 2008 |
| I agree with Marcilio, because, to do a exchange separate from the other owners, when there is jointly owned property, the ownership needs to be by tenants in common. | |
| 12 May 2008 | |
| Perhaps I did not word my question clearly enough. Assume both parties agree to sell the property, but only one of the spouses wants to do a 1031 exchange. Can the wife do a 1031 exchange if they are still married as of the end of the year if she files married filing separately? The husband would also file separately, but he would recognize his share of the gain.
The wife wants to buy a replacement property in her own name, but the husband just wants the cash. | |
RoyDaleOne (talk|edits) said: | 12 May 2008 |
| It depend Seg on how the property is owned ( I'll use titled). Being married is only one aspect that can affect title to the property. | |
