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I was divorce last year. In the divorce decree, I had bought a mobile home prior to the marriage. I gave my ex-wife the mobile home as a part of the divorce settlement and agreed to pay off the note and tranfer ownership within 5 years of the final divorce. I will be paying off the trailer this month. Approximate value of the mobile home is $25,000. Is this tax deductible in any way?


ANSWER


Expert Matthew Peterson's Answer:

According to IRS Tax Topic 452, noncash property settlements ordered under a divorce or separation instrument are not considered alimony. Alimony is deducted from income. Unfortunately, since the property transfer is not considered alimony by the IRS, it is not tax deductible in this scenario.

Matthew Peterson, CPA

Washington

4 yrs experience

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