To claim the $500k married joint exclusion on the sale of a property, do I need to married at the time of the property sale or just within the same tax year?

[limorelli]

For example if I sell my property in May but get married in August to my boyfriend and we both meet the 2 of last 5 years test to claim the exemption, could we file jointly to claim it even though the wedding was after the sale?  Note the property is in my name only not both of ours.

[Leonard]

Yes, you can claim the $500K married joint exclusion if all of the following are true:

• you are married and file a joint return for the year
• either you or your spouse meets the ownership test
• both you and your spouse meet the use test, and
• during the 2-year period ending on the date of the sale, neither you or your spouse excluded gain from the sale of another home.

[limorelli]

I’ve read this response and find the first bullet vague, hence my original question.  Does the statement ‘You are married and file a joint return’ mean you must be married at the time of the sale or just married sometime during that year (even if after the sale) and file jointly?  Thanks.

[Leonard]

You can claim the exemption so long as you were married on or before 12/31/2018

[Hal_Al]

The critical test is the third bullet point:
- both you and your spouse must meet the use test

As to bullet point one; you only have to be eligible to (and do) file a joint return. It doesn't matter when you got married

[limorelli]

Thank you both!  We meet all the bullets except we are not yet married.  Looking to sell the property this year (2019) so that tax savings may be incentive enough to proceed with our long standing marriage plans 🙂

[Leonard]

Your welcome & congrats !!!