Got married and sold 2 houses in the same year: $250k exclusion for each, or $500k total?

[AmeliesUncle]

Yes, it would qualify for the $250,000 exclusion, and yes, you can do it on a Joint tax return.

[michellelnorton]

Do you know where I can find proof for this situation? 2 clients in the same situation but can't find anything that states that they can each use 250,000 instead of only a total of 500,000 for sale of primary residence.

[AmeliesUncle]

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@michellelnorton wrote:

Do you know where I can find proof for this situation? 

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Example 3.

During 1999, married Taxpayers H and W each sell a residence that each had separately owned and used as a principal residence before their marriage. Each spouse meets the ownership and use tests for his or her respective residence. Neither spouse meets the use requirement for the other spouse's residence. H and W file a joint return for the year of the sales. The gain realized from the sale of H's residence is $200,000. The gain realized from the sale of W's residence is $300,000. Because the ownership and use requirements are met for each residence by each respective spouse, H and W are each eligible to exclude up to $250,000 of gain from the sale of their individual residences. However, W may not use H's unused exclusion to exclude gain in excess of her limitation amount. Therefore, H and W must recognize $50,000 of the gain realized on the sale of W's residence.

https://www.law.cornell.edu/cfr/text/26/1.121-2