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Selling the house in a divorce

Up to $250,000 exclusion each

Can You Write Off Selling the House in a Divorce?

Short answer: Each spouse can exclude up to $250,000 of gain if they owned and lived there two of the last five years.

A spouse who moved out can still count time if the other spouse lives there under the divorce decree.

Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.