@Staylor2023 as I stated, the rule is that to be elgible for the $250,000 exclusion, you must OWN and RESIDE in the home for 2 of the past 5 years.
Now that I understand the situation,
- even though you meet the residence requirement, you don't meet the ownership requirement.
- Your ex-husband meets the ownership requirement and meets the residence requirement (even if he did not live in the home) due meeting a special rule in divorce situations. See page 4 - bottom left. (this is why I suspect the attorney stated your ex was eligible for the $250,000)
https://www.irs.gov/pub/irs-pdf/p523.pdf
Separated or divorced taxpayers. If you were separated or divorced prior to the sale of the home, you can treat the home as your residence if:
• You are a sole or joint owner, and
• Your spouse or former spouse is allowed to live in the home under a divorce or separation agreement and
uses the home as his or her main home.
<<If he had placed me on the deed he could have avoided the tax. >>
yes, because you both would have satisfied the 2 of 5 rule for ownership AND residency.
And in case you think about it, putting your name on the deed now, before the home sells, won't work, because you could not satisfy 2 years of ownership over the past 5 years :(
