Legal Question in Real Estate Law in Massachusetts
i am getting a sum of money due to me from the sale of my house in MA from a divorce agreement. Can i take this money & apply it to a mortage that my boyfriend has in FL & not have to pay any taxes or penalties on this income.
1 Answer from Attorneys
If you sold the primary home for less than $250,000 (single or $500,000 couple) more than you paid for the home with any capital improvements, then the money received is tax free.
There is no longer a reinvestment in a home provision which defers taxes. Anything over the $250K is subject to capital gains.
There is a provision which allows you to use the total proceeds in buying a new home. If you use the money to pay down your boyfriends mortgage, make sure you are put on the deed and you have a written agreement as to what happens if you break-up.