Legal Question in Real Estate Law in California

Re: Capital Gains

It depends upon many factors; how did you and your husband hold the property? If you held it jointly and he simply quitclaimed it to you, then there would be none. If it was sold, and it was not your principal residence, and was held for more than a year,then you would have to pay capital gains tax calculated upon the gain in excess of your orignal adjusted basis, with any depreciation added back in, of 15% federal and just under 10 % ( I think it is 9.1, or so) to the State of California. You need to take your paperwork, including tax returns showing how the property was treated in years past, to an accountant in order to provide an accurate amount. Please note that you cannot reinvest once you have received the proceeds of a sold investment property, but you could have attempted a tax-deferred exchange BEFORE the transaction was carried out--it is too late if you already have the proceeds.

Re: Capital Gains

I'm not entirely sure I understand the question, but I also think there's a possibility Ms. Deming didn't understand it either. Her answer is correct if real property has been sold. As I take it, you received a negotiated amount of cash in lieu of selling the property and dividing the proceeds, and your ex-husband kept the property.

If this is so, and absent any other provision in the marital settlement agreement respecting future taxes, I would think no income has been realized, that this is emrely a division of assets, and that you owe no taxes.

I hasten to add that you need to ask these questions to a well-qualified tax person -- either an accountant or a very well-trained tax preparer -- to be sure. Good luck finding one at this time of year.

I see you are in Santa Rosa. My office was formerly on Mendocino Ave. and I know several accountants I could recommend, if you wish.