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Zach and Bridget got married, bought a home for $305,000, and lived in it for 6 years. The couple got divorced 4 years ago, and
Zach and Bridget got married, bought a home for $305,000, and lived in it for 6 years. The couple got divorced 4 years ago, and Bridget received title to the home in the divorce settlement. She continued to live in the home until she sold it this year for $590,000. Zach had used one room in the home as a qualified home office for the purpose of running his schedule C business. He used the regular method to calculate his home office deduction and correctly deducted a total of $8,500 depreciation on their MFJ returns. Bridget, who did not remarry, used Zach's old home office as a guest bedroom after the divorce Bridget paid relator commissions of $16,400 when she sold the property Describe any tax consequences when home ownership transferred to Bridget upon divorce Calculate Bridget's realized gain or loss and recognized gain or loss on the sale of their home Zach and Bridget got married, bought a home for $305,000, and lived in it for 6 years. The couple got divorced 4 years ago, and Bridget received title to the home in the divorce settlement. She continued to live in the home until she sold it this year for $590,000. Zach had used one room in the home as a qualified home office for the purpose of running his schedule C business. He used the regular method to calculate his home office deduction and correctly deducted a total of $8,500 depreciation on their MFJ returns. Bridget, who did not remarry, used Zach's old home office as a guest bedroom after the divorce Bridget paid relator commissions of $16,400 when she sold the property Describe any tax consequences when home ownership transferred to Bridget upon divorce Calculate Bridget's realized gain or loss and recognized gain or loss on the sale of their home
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