rjs
Level 15
Level 15

Deductions & credits

The $500,000 exclusion can only be claimed on a joint tax return. With an RDP you cannot file a joint federal return. You have to each file a separate federal tax return. But you didn't say who actually owned the home or how long each of you lived there. You might each be eligible for the $250,000 exclusion on your individual federal tax returns if you each satisfy the requirements separately. That would be the case if, for example, you owned the home jointly for 2 of the last 5 years and you both lived in the home for 2 of the last 5 years.