Friday, December 23, 2011

Report As Income when receiving lump sum cash from spouse buying out the marital residence due to divorce?

In my divorce agreement with my soon-to-be-ex-husband, he will pay me a lump sum cash, say $150,000 to have my name removed from the title of our house, which we bought together 4 years ago. Do I need to report this $150,000 as income on my 1040? If yes, what kind of income would it be? Will it be taxable? Thanks!

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