Home Sale Tax Exclusion - Quitclaim Deed

[ldn906]

Hello,

I am wondering if my wife and I would qualify for the $500,000 home sale tax exclusion in this scenario.

For the past 5 years, my brother, my wife, and I were on a deed for a house.  My wife and I have lived in the house during this time.  My brother has not and has a different primary residence.  In January of this year, my brother filed a quitclaim deed transferring his interest in the house to my wife and I. 

If we were to sell the house this year, would we satisfy the ownership test for the home sale tax exclusion?

Thank you.

[AmyC]

Yes. You have been on the deed for 5 years. Your brother's quit claim simply increased your percentage of ownership. You and your wife have owned and used the house for  5 years which more than satisfies the requirement provided you did not sell another primary home within the last 2 years.

[ldn906]

Thank you!