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Level 2
March 24, 2021
Question

If I sold my home and got married last year, do I have to file separately this year in order to claim the home as primary residence?

Both spouses have to live in a home to claim it as primary. I don't see a way to show a home as primary before we got married if we file jointly.

3 replies

Mike9241
Level 15
Level 15
March 24, 2021

to claim as a primary residence you must have owned it for any 2 out 5 years before sale and the same rule applies for occupancy.  you can still file jointly even if your spouse did not occupy the house for 2 out of 5 years before the sale but your home sale exclusion will be limited to $250,000. The same if you file separately. 

Mike9241
Level 2
March 26, 2021

Thank  you. Does the $250K cap refer to cash out at time of sale or to profit (sale price minus purchase price)?

AmyC
Alumni - Intuit
March 27, 2021

Profit. File MFJ, the house was yours and you qualify. The program can handle it.

See Topic No. 701 Sale of Your Home. If you qualify and did not receive a 1099-S, nothing to report. If you received a 1099-S, report it and the return will show a capital gain of zero.

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