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Deductions & credits
If only one spouse meets the "use test" (living in the home for 2 out of the last five years before the sale), you can exclude up to $250,000 of capital gain.
Only one spouse has to own the home, but both spouses have to live in the home for two years to qualify for the full $500,000 exclusion.
See Publication 523.
‎February 10, 2025
7:46 PM