What is the name of your state? NY
My divorce is in the final stages (we've agreed on a settlement, and are just waiting for the judge to sign the papers).
As part of our settlement agreement, my ex is buying out my interest in our house, and just this past Friday, refinanced the house into his name alone. I should be getting my equity check from the bank tomorrow.
I plan to use the money to pay off my car loan, a loan from my parents for my lawyer's retainer, my credit card and part of my student loan....and then put the rest into savings.
BUT...that is on the assumption that I will not be taxed on my equity distribution come tax time next year. If I WILL be taxed on it, then I'll forgo paying down my student loan and save that money to pay the taxes.
So...Will I be taxed on the equity distribution?
Thanks!
-Christina
My divorce is in the final stages (we've agreed on a settlement, and are just waiting for the judge to sign the papers).
As part of our settlement agreement, my ex is buying out my interest in our house, and just this past Friday, refinanced the house into his name alone. I should be getting my equity check from the bank tomorrow.
I plan to use the money to pay off my car loan, a loan from my parents for my lawyer's retainer, my credit card and part of my student loan....and then put the rest into savings.
BUT...that is on the assumption that I will not be taxed on my equity distribution come tax time next year. If I WILL be taxed on it, then I'll forgo paying down my student loan and save that money to pay the taxes.
So...Will I be taxed on the equity distribution?
Thanks!
-Christina