Hi,
My spouse and I sold a home with about $80K in capital gains. We’re married, filing jointly, and both on the title. However, only one of us lived in the home for at least two of the past five years (the other spouse does not meet the residence test).
I know we can't get $500K exclusion but I am wondering if we can apply the 250K exclusion to both of our shares of ownership OR can we only exclude half the gain ($40K) for the spouse who qualifies, and the other half is taxable?
Thanks!
