Hi, Ex-wife & I are selling our home. We will split the profit & hope to each claim the $250,000 exemption filing separately. She isn't on the deed, is that a problem?

[holleran244]

Divorced since 2016, I lived in the home while she moved out. Since refinancing a couple years, ago I am the only one on the deed, but we will split the profit equally.

[MinhT1]

Only you can have the home sale exclusion of capital gains of $250,000 as you have lived in the home for more than 2 years in the last 5 years.

Your ex-wife is not eligible for this exclusion.

The IRS says:

If you have lived in the house you plan to sell for more than 2 years in the last 5 years before you sell it, you are eligible for the capital gain exclusion of $250,000 ($500,000 if you file jointly).

If the capital gain is below this threshold, you do not have to report the sale on your tax return, except if you receive a form 1099-S in which case you have to report the sale but the capital gain will be excluded from taxation.

Please read this IRS document for more information.