"In 2005, Two Sisters, Donna and Suzy, purchases a SFH primary residence for $150. Donna married James in 2007 and moved out and Suzy continued to live there and never rented out. In 2019, the house anticipates being sold for $450. (assume zero for simplicity in capital improvements - therefore $300 in CG) Can Suzy exclude $250 of the capital gains since she lived there and Donna and James declare $50 CG on their taxes? Can Donna gift $10 to 3 nephews at the closing with a check written to each 3 nephew names to reduce Donna's capital gains?"
