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jcstavert
New Member

Can we take a capital gains exclusion?

My sister and I inherited my Mom's home. My sister took care of Mom in her final years and lived in the house for over two years after Mom's death until we sold it. Are we are entitled to a capital gains exclusion since the house was owned for more than 5 years and was lived in by a family member for two more years after Mom's passing?


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Accepted Solutions
Anita01
New Member

Can we take a capital gains exclusion?

There's no "we" involved.  You each inherited a share of the house, and will only be entering cost basis and sale amounts for your share.  Your sister is entitled to an exclusion for her sale of her share of the house.  You are not because it was not your primary residence for at least 2 of the years prior to the sale.  You could claim your sale as the sale of a second home because it was lived in by your sister, but there is no exclusion for the sale of a second home.

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2 Replies
Hal_Al
Level 15

Can we take a capital gains exclusion?

Your sister is entitled to the home sale exclusion on her half. You are not.
Anita01
New Member

Can we take a capital gains exclusion?

There's no "we" involved.  You each inherited a share of the house, and will only be entering cost basis and sale amounts for your share.  Your sister is entitled to an exclusion for her sale of her share of the house.  You are not because it was not your primary residence for at least 2 of the years prior to the sale.  You could claim your sale as the sale of a second home because it was lived in by your sister, but there is no exclusion for the sale of a second home.

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