Hello. My wife and I sold our house last year and had some confusion about the 1099-S. At closing we both received information sheets about the 1099-S that my closing agent crossed out and wrote “exempt” on them. Also, they included 2 sets of the 1099-S addressed to each spouse titled “copy A, B, C” and the sales price was distributed between us equally on them. Do we have to file them if we’re exempt?
Also, we plan to file separately and to make things even more confusing I owned and lived in the home for 4 years while she moved in last year after we got married, so is she even technically exempt? It's considered marital property in Minnesota.
