@RayW7 Hoping I could ask another question since you are knowledgeable in the capital gains tax issues.
I owned a home and put it up for sale last year and it sold in August 2020. The mortgage and deed were solely under my name and I was exempt from paying cap gains in that transaction because I met all the requirements.
My fiancé and i purchased a home April 2020 but I was not on the mortgage- just the deed.
We then got married Feb 2021.
If we were both able to meet the residence requirement of two years and sell the home May 2022, it sounds like I would NOT be eligible to be exempt from capital gains because of the “look back” rule but my husband would be since he wasn’t part of that house. That means we would only be able to qualify for $250k vs the $500k exemption correct? When filling out the “certification for no information reporting” form from the Title Company during the sale it sounds some we would have to fill out a form for each of us. Does that mean when tax time rolls around we will have to file married filing separately that year? If I receive the 1099 but he doesn’t and the proceeds are less than $250k would I end up paying anyway? I figure he wouldn’t receive the 1099 because he would have answered true to the title questions.
