Residence requirement for selling house

[taxstuff]

I have lived in my house for about ten years, but my wife has only lived in my house for one year.  Will we be able to avoid tax up to 500k when selling a house?  

What if we have been married for two years (marriage certificate is two years old), but my wife has only lived in my house for one year, will we be able to avoid tax up to 500k when selling a house?   Thank you.

[Bsch4477]

, the spouse is notrequired to be on the title for the $500,000 exclusion when married. But the spouse MUST have lived in the home for at least 2 years during the previous 5 years on the date of sale.

[taxstuff]

Thank you. Also, since my wife has lived in the house for at least one year (but under two years), is that considered long term capital gain?  If yes, since the tax bracket for married filing jointly is zero percent for income under around 78,000, does that mean if our income is under 78,00, then we don't pay the capital tax on the 250k house sale profit?  

- Also, is the income amount shown in line 8b for 1040 tax form? Or is it in another line?  Thank you.

[Bsch4477]

Yes, it is a long term capital gain. 

It is reported on line 7 of the 1040 in 2020 and on line 6 for 2019. 
Remember that the capital gain is income and so added to your other income to determine your tax bracket so some of that capital gains income will be taxed. 

Another consideration is state tax if you have one. While federal capital gains is generally taxed at a rate below your tax bracket rate, your state may tax those gains according to your marginal tax rate.