topic To get both the husband and wife $250K cap gains exclusion on a home sale, must you be married at the time of the sale or just married by the time taxes are filed? in Deductions & credits

To get both the husband and wife $250K cap gains exclusion on a home sale, must you be married at the time of the sale or just married by the time taxes are filed?

maria-rosa-9832 — Sat, 01 Jun 2019 20:52:18 GMT

For example, lets say I am single and sell my house in June 2019, I get married in December of 2019 and then file my taxes for 2019 as married filing jointly, can we get both $250K capital gains exclusions totaling $500K?

In your example, you can use the exclusion for the home y...

Opus 17 — Sat, 01 Jun 2019 20:52:20 GMT

In your example, you can use the exclusion for the home you owned before you were married, if you otherwise qualify. If your spouse sells a home he owned before he was married, they can take their separate exclusion on that home.

Then, your next opportunity to use the exclusion would be at least 2 years from the latest usage of the exclusion by either one of you.

Note the important point here "if you otherwise qualify"....

Zbucklyo — Sat, 01 Jun 2019 20:52:21 GMT

Note the important point here "if you otherwise qualify". Getting married does not alone qualify you for the $500,000 exclusion. The spouse must also have lived in the house for two of five years prior to the sale, and not have taken the exclusion in the two years prior to the sale.

Yes. You may both claim, up to $250,000 exclusion

JulieR — Sat, 01 Jun 2019 20:52:23 GMT

Yes. You may both claim, up to $250,000 exclusion