My sister and I jointly own a home.What are the tax implications of selling a home? We've owned the home for 15 yrs. Does the capital gains exemption apply to both of us?

[Opus 17]

Who has actually lived In the home? Was it used in business (home office) or as a rental?

[Hal_Al · Accepted solution]

Yes, the capital gains exemption apply to both of you.

 If you both owned and lived in the home, as your principal residence, for, at least, two out of the five years prior to the sale, you can both exclude (up to)  $250,000 of capital gain, under the home sale rules.