Can we split the Gross Proceeds from the sale of my primary residence in half if there were 2 married couples that owned the home? Both couples owned it 50/50

[pioneerlms]

Just curious how to report the proceeds while both couples file taxes separately.

[HopeS]

Yes, you can split the proceeds from the sale of your primary home between the 2 couples who own the property.  Each couple should report their share of the sale of their individual tax returns. Determine each share of the selling price, sales expenses, purchase price, purchase expenses, etc, to report each couple portion of the sale.

Please follow the steps below to include your share on your tax return:

• Go to Federal Taxes

• Select Wages & Income

• Click I'll choose what I work on

• Scroll down toward the bottom and find the "Less Common Income" section

• Select Start next to Sale of Home

• Go through this section and include your 1099-S information.

@pioneerlms 

[pioneerlms]

Thank you for that information. 
Am I correct to assume that the $500,000 exclusion will apply to each couple? Or do we have to split that too so each couple only gets the $250,000 exclusion?

[Critter-3]

If you file a joint return you can exclude $500K but if you file separately each of you is capped at $250K ... so you may want/need to revisit the filing jointly option. 

[pioneerlms]

Yes, each couple will file a joint return. Since we sold our house that had 4 owners (2 married couples), do both couples get that $500,000 exclusion?

[Carl]

do both couples get that $500,000 exclusion?

Only if both couples lived in the house as the primary residence, for at least two of the last 5 years they owned it. If any one individual does not meet that requirement, then that individual does not qualify for the exclusion.

If the house was your primary residence for any two years (730 days) of the last 5 years (1826 days) it was owned, counting back from the closing date of the sale, they qualify for the exclusion. (There are other requirements that must be met. I'm just not mentioning them here.)

If the last occupant to vacate the house was a paying tenant, then one could qualify for the entire exclusion.

If the last occupant to vacate the house was an owner, then the amount of the exclusion will be pro-rated.