Initial value was $500K. THe house is in both my wife and my name. She is not a US Citizen or Resident. I file married but filing seperate. We just got divorced. THe house is sellintg at $1.275 Million. The title of the property is in both our names. She is non US Citizen or Resident and does not file. I file as married filing seperate. We divorced last year if that makes a difference. So what I understand from this if my house was built in 2000 at $500000 and we sell it at lets say $1.3 million I have to pay tax on the difference? Would it be limited to my portion? $1.3Million – $500,000 = $800,000 – (realtor fees + title fees + Bahamas Govt Tax)? Lets say that net comes down to $800,000 – $156,000= $644000 How much tax would I have to pay? This is my primary residence.
