We are husband and wife, and file 1040 jointly every year. We are not US citizen nor green card holders, but US residents (resident aliens) for US tax purpose. We are now selling our primary residence that is jointly owned by us. We have lived in this house for more than 10 years. After selling this house, we would like to divide the proceeds into half and half between us since we feel that both of us contributed equally to build this asset. Then deposit each half into respective personal bank account of us. The total amount of proceeds will be about $500,000. I believe this action of dividing the proceeds into half and half between us, although one of us mostly paid mortgages, does not produce any tax problem since we file 1040 jointly. One concern is if the tax authority might see it as gift giving from one spouse to the other, in which case paying some tax may be necessary. Can some one confirm that this is not a problem. Thank you very much.
- posted
17 years ago