- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
For the "2 years of the last 5 years" rule, "ownership" is imparted by marriage but not residency.
You can file a joint return for 2021, but the maximum exclusion your spouse can claim on her home is $250,000. You can't use the full $500,000 exclusion for 2 reasons:
1. you used your own exclusion less than 2 years before your spouse sold her home,
2. you have not (I assume) lived in your spouse's home as your main residence for 2 years before the sale date.
Then, you can't use the full $500,000 exclusion for the sale of another home (if you need to move again) until 2 years + 1 day after your wife used her exclusion for the 2021 sale.
‎July 12, 2021
10:43 AM
325 Views