A tax question . My ex is giving me 70,000 from the sale of our house. Can I cash this personal check without?

Question

Without paying taxes? He will be paying taxes on the 300,000 already. Can I simply cash this personal check without paying taxes again?

Answer 1

That would be a good question for your lawyer.  It depends on how things are stated in your property settlement paperwork.  Is he REQUIRED to give you this, or is he just doing it voluntarily?

Answer 2

See my answer to your later question.

You can cash the check and not pay tax.  You do not have to report this on your tax return.  The IRS will be notified but you are not doing anything illegal so the notice to the IRS is not a problem.

Answer 3

i would look into that deal , i thought you would be entitled to 50% of the sale, something is wrong there

Answer 4

Only an accountant can tell you that. You can cash the check anyway, but maybe have to pay taxes later.

Answer 5

Was  your  name  on  the  escrow  /  title  paperwork ?

Also ,  if  you  lived  in  the   house  more  than  2  years  there  are  capital  gains  exemptions .

A  $70K  check  exceeds  the  $10K  limit  for  banks  &  IRS  notification .

I   do   believe  the  IRS   will  be  flagged  when  it  is  deposited .

Dumb  move  to   try  and  be  slick  with  the  IRS  ,

Ask    the   RE   attorney  on the  sale .

They  should  know   your  status .

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