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lawomack
New Member

Sale of Home. Wife sold her long term residence after marrying me in 2017. I did not live in her house. Must we file married filing separately for her to exclusion?

 
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Coleen3
Intuit Alumni

Sale of Home. Wife sold her long term residence after marrying me in 2017. I did not live in her house. Must we file married filing separately for her to exclusion?

No, you do not have to file separately. She will be able to exclude her $250,000 assuming she meets the qualifications.

Does Your Home Sale Qualify for Maximum Exclusion

The tax code recognizes the importance of home ownership by providing certain tax breaks when you sell your home. To qualify for these breaks, your home must meet the Eligibility Test , which is explained later.

The type of home involved is less important. A single-family home, condominium, cooperative apartment, mobile home, or houseboat can all count as a home.

How your sale qualifies.   Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.

  • You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
  • You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
  • You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.

https://www.irs.gov/publications/p523#en_US_2017_publink10008937

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5 Replies
Coleen3
Intuit Alumni

Sale of Home. Wife sold her long term residence after marrying me in 2017. I did not live in her house. Must we file married filing separately for her to exclusion?

No, you do not have to file separately. She will be able to exclude her $250,000 assuming she meets the qualifications.

Does Your Home Sale Qualify for Maximum Exclusion

The tax code recognizes the importance of home ownership by providing certain tax breaks when you sell your home. To qualify for these breaks, your home must meet the Eligibility Test , which is explained later.

The type of home involved is less important. A single-family home, condominium, cooperative apartment, mobile home, or houseboat can all count as a home.

How your sale qualifies.   Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.

  • You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
  • You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
  • You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.

https://www.irs.gov/publications/p523#en_US_2017_publink10008937

Coleen3
Intuit Alumni

Sale of Home. Wife sold her long term residence after marrying me in 2017. I did not live in her house. Must we file married filing separately for her to exclusion?

How else can I help you?
lawomack
New Member

Sale of Home. Wife sold her long term residence after marrying me in 2017. I did not live in her house. Must we file married filing separately for her to exclusion?

The questions in TurboTax has a residency requirement for both of us & concludes that we do not meet the double residency requirement.
Coleen3
Intuit Alumni

Sale of Home. Wife sold her long term residence after marrying me in 2017. I did not live in her house. Must we file married filing separately for her to exclusion?

If you indicated MFJ, the program will ask you separately about the requirement, You will answer that your wife lived there and that the exclusion is for her. When it asks about your exclusion, say no. There will be three separate questions. I just worked through it and got the exclusion.
lawomack
New Member

Sale of Home. Wife sold her long term residence after marrying me in 2017. I did not live in her house. Must we file married filing separately for her to exclusion?

Thanks. It worked.
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