social security divorce stuff question

[TXSG8R 3,362]

My mom is recently divorced on top of being recently retired.  She's filling out an SSA-44 to report the divorce, she already submitted one to report the retirement.  The hard part is reporting her adjusted gross income.  They sold both their primary residence as well as some hunting property.  The hunting property was purchased for roughly $40k between my parents and some friends.  Years later my parents bought friends out, on paper for $10 bucks, even though supposedly my dad gave them $30k for the actual buyout (cant get a straight answer out of the bastard).  During the divorce, he was awarded the first $75k of the hunting property to balance out some other stuff my mom got, and then they split the remainder.  The property sold for roughly $180k.  Do we/how do we report that on her adjusted gross income?  She wound up receiving right around $40k, he got around $110k for this property.  Ive been told by numerous people that the primary residence sale doesn't need to be reported as income.  

What does she report?  The $40k?  $30k (subtracting half their initial purchase for the property from her portion of the sale}?  We are struggling with how (and which) the purchase price should be pulled from their uneven distribution from the sale.  

[davidg 4,040]

Have they had the hunting property a long time?  Shouldn't that be capitol gains at a minimum?  Sounds like you need a good CPA to advise you.

[Jerry Callo 8,780]

Does she need to report AGI currently or as of the last tax return?  Sounds like she's probably going to need a CPA to address her taxes for 2020 - if so, hire one now.

[Reagan1k 3,024]

Yep - I bet the AGI they are looking for is what is on the most recent tax return.  

I'm no CPA, but when something requires an AGI number they normally are referencing to the previous year's tax filing.

Virtually impossible for most people to provide an AGI for the current tax year midstream.

I'd try and verify the year in question and then consult with a CPA for the correct figure.  

She certainly doesn't want to err here, as not only might it cost her money, but trying to correct it later would typically be a pain in the ass in dealing with the SS Admin.

[TXSG8R 3,362]

Yea, I called my CPA and she didn't have a firm answer.  I don't know if this is a general answer any CPA should know or if they specialize in different things.  I've only used her for business stuff.  She did her retirement AGI adjustment because the delta between her regular income versus retirement was going to hose her on her Medicare premiums (she called SS and thats what they told her to do).  She is trying to report her divorce to keep SS straight, but its the same form and has an AGI field in it.  I guess she will need to find a CPA that knows SS/retiree/land sale/divorce stuff?

[ztejas 43,721]

1 hour ago, TXSG8R said:

  I don't know if this is a general answer any CPA should know

If they're worth a shit I would think so. But better that she is being honest with you about what she does and doesn't know rather than pawn off some bad advice. 

[luke duke 6,420]

My mom is recently divorced

Post pics.