My fiance sold his house a year ago (and used the exclusion) & I want to sell mine (I qualify for the exclusion). Does the sale need to be final before our wedding?

[snow1]

We bought a house together after the sale of his home but would like to now send him back to school and pay for our wedding, hence desire to sell mine that has been used as a rental property for the past year and a half, but I resided there for the two years prior. In order for me to get the exclusion, does this sale have to be final before we are married?

[Opus 17 · Accepted solution]

You can use your exclusion either before or after you are married, on the home you owned before the marriage.  You can't add your new spouse's exclusion since he used it less than 2 years ago, so your maximum exclusion is $250,000. Once you are married, you will have to wait 731 days from whoever used their exclusion most recently, to use it again as a married couple.

[Carl]

I'm wondering if it matters if you live in and/or are married in a community property state.

[Opus 17]

It shouldn't just on the fact that the home that belonged to spouse #1 before the marriage will normally be considered separate property and not community property.  Community property is only those assets and income that is earned/acquired as part of the marital community.