topic Re: How to decrease capitol gains tax after selling our only houese in Get your taxes done using TurboTax

How to decrease capitol gains tax after selling our only houese

Mombirgit — Wed, 12 Oct 2022 19:07:03 GMT

My husband died in 2020 and I sold our house in 2021, no one lived in that house and it was the only house that we owned. I was living in an RV. Can I claim that as my primary residence?

And how do I best minimize the taxes?

Re: How to decrease capitol gains tax after selling our only houese

Critter-3 — Wed, 12 Oct 2022 19:10:25 GMT

Was that your primary residence for 2 out of the 5 years prior to the sale ? Did you have it homesteaded for RE tax purposes ?

Re: How to decrease capitol gains tax after selling our only houese

Mike9241 — Wed, 12 Oct 2022 19:28:32 GMT

who was on the title on the date your husband died? if just him, the property would get a step-up in basis to FMV on the date of death.

if both of you 50% would get a step-up to FMV and your 50% would be 1/2 the tax basis. if you lived in it any 2 out of 5 years before the sale your portion would qualify for the home sale exclusion. there is a special rule for surviving spouses. as such, you are entitled to a $500,000 exclusion on any taxable gain since the home was sold within 2 years of his death.