Is the 2-year limit an exact 24 months from the date of death of the spouse for the home sale to close or is it 2 calendar years?
Example: spouse passed 10 April 23
1. Does home sale have close NLT 10 April 25 - exactly 2-yrs from date of death?
2. Or does home sale have to close NLT 31 Dec 25 (by the end of the 2nd tax year)?
Can't find the specific answer in Publication 523-Surviving Spouses:
It says this below - but does not specifically say within 2 years from the date of death - I think that is what it means but need to know the last date the house could be sold (helping a friend who lost their spouse in early 2023 and I think time is running out to get it on the market if it is 24 months)
Also, you may be able to increase your exclusion
amount from $250,000 to $500,000. You may take the
higher exclusion if you meet all of the following conditions.
1. You sell your home within 2 years of the death of your
spouse;
