+21 Divorce And Tax Basis For Sale Of Home References. The reason is that when property changes hands as a result of a divorce—whether it is the family home, a portfolio of stocks or other assets—the tax basis of the property also changes hands. Its basis is now $225,000, instead of $200,000.

You don’t need to report your home sale on your tax return. Thanks to the tax law, in a divorce settlement one piece of property can be worth far more than another with exactly the same market value. Special tax provisions, however, apply with respect to the calculation of gain on property acquired before june 1, 1971.