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to claim as a primary residence you must have owned it for any 2 out 5 years before sale and the same rule applies for occupancy. you can still file jointly even if your spouse did not occupy the house for 2 out of 5 years before the sale but your home sale exclusion will be limited to $250,000. The same if you file separately.
Thank you. Does the $250K cap refer to cash out at time of sale or to profit (sale price minus purchase price)?
Profit. File MFJ, the house was yours and you qualify. The program can handle it.
See Topic No. 701 Sale of Your Home. If you qualify and did not receive a 1099-S, nothing to report. If you received a 1099-S, report it and the return will show a capital gain of zero.
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