- Yes, an elder law attorney guided us on the 1/24/22 transfer of the home from my wife’s mom to my wife. Since my wife was her mom’s live-in caregiver for 2 years or longer, Medicaid allowed her mom to make the home ownership transfer to my wife instead of my wife’s mom being required to sell the home to finance her nursing home. My wife & I have resided in this home for the last 10 years. We’ll sell my wife’s home in December, 2022, with a $300K+ gain above my wife’s cost basis. We’ll file jointly/married. The $500K tax exclusion typically requires 2 years of ownership. Can the $500K tax exclusion be applied with only 11 months of ownership? That is, does this Medicaid/nursing home “caretaker child exclusion” waive the typical 2 year ownership requirement?
November 29, 2022
9:51 AM
