sale of a home

[hiamsalim]

my husband and I have lived in our home for 25 years...the deed however is in my name and my sisters.  she has no claim to the home...how would the capital gain work here...can my husband and I claim the full exclusion of $25K each...we meet the look back requirements

[xmasbaby0]

Did you already sell the house---or not?   If not, why have you let twenty-five years go by without getting your sister's name off the deed?  ("....she has no claim to the home....")

[hiamsalim]

the home has not bee sold yet...the sale will probably happen in March 2025

[xmasbaby0]

Seek legal advice asap to get your sister's name off the deed.   And you are mistaken about the amount of the exclusion for capital gain on the home.  

If your gain was more than  $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return.  Whether you re-invested the gain in to another house is irrelevant.  If you  have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

• If you are using online TT, you need Premium software to report the 1099-S

NOTE:   If you have ever used the home as rental property or claimed a home office, you have more information to enter

[hiamsalim]

the home will not yield more than 400K in capital gain.  what happens if my sister's name is still on the deed at the time of the sale.  can she relinquish "ownership" to my husband. 

[xmasbaby0]

@hiamsalim We cannot provide legal advice.   Seek advice from an attorney about the deed and your sister.