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I was awarded an investment property we had, which I sold, and was required to pay him a settlement of $ 55000 out of the $ 95000 sale price. It came directly off the HUD statement and was given to him at closing. The 1099S came to me, gross proceeds $ 95000. Can I deduct the payment as one of the expenses to sell the property and deduct the cost to acquire the property ( It was a house that we had built to sell ) Not our principle residence.

1 Thought on Can I count a settlement payment to my ex as an expense?
  1. Reply
    bdancer222
    July 24, 2011 at 3:59 am

    You really need to check with a CPA. You should not have to pay the taxes on the profits you gave to your ex, but I’m not sure exactly how you would classify those funds.

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