Q: Would I get hit with capital gains tax on house sold that I signed away in divorce settlement?
Signed away all rights to house in divorce, but spouse hasn’t and won’t refinance to take my name off mortgage. She plans on selling and I will get no money in the sale, would I get hit with a capital gains tax?
A:
Your obligation on the financing is not related to ownership for tax purposes.
As long as you've transferred the property out of your name you won't have any income.
A: Since you will receive no proceeds from the sale, there should be no capital gains tax.
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