Sale of Home

LaughTrack · ‎March 21, 2026

My spouse and I sold a home in 2025 which we jointly owned, but only she lived in. I think we qualify for a $250k exemption but it is not clear to me if or how TurboTax accommodates this. Help, please,

MindyB

Yes, TurboTax accommodates this. Since you owned the home jointly but only your spouse met the two-year residency rule, you’re correct to compute a $250,000 exclusion rather than the full $500,000 usually available to couples.

When you go through the "Sale of Home" section, it's going to ask each of you individually how long you lived there. When you check "no" for yourself and "yes" for her, the software will automatically cap your tax-free gain at $250,000 on your joint return.

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MindyB

Yes, TurboTax accommodates this. Since you owned the home jointly but only your spouse met the two-year residency rule, you’re correct to compute a $250,000 exclusion rather than the full $500,000 usually available to couples.

When you go through the "Sale of Home" section, it's going to ask each of you individually how long you lived there. When you check "no" for yourself and "yes" for her, the software will automatically cap your tax-free gain at $250,000 on your joint return.