@IllesFarmer wrote:
I inherited my dad's house. I had lived there since 2017 until 2024 I sold out that house. My dad passed away in July 2020, I can provide Deed Transfer, and appraisal of 2021, etc. To approve I owned that house and lived there for at least 2 out of 5 years, what documents do I need to prepare my tax return? I got married in 2022, my husband moved in that house. Do I meet the $500000 exclusion?
First, do you know what your basis is? Depending on the how the deed was written and the intention of the parties, your basis might be half your father's purchase price plus half the value when he died in 2020, or it might be the full fair market value when he died in 2020.
Then, you qualify for your $250,000 exclusion, based on the facts. Your spouse might qualify for their $250,000 exclusion, if they lived in the home as their main home for more than 731 days (depending on when they moved in in 2022 and when you closed in 2024). If they don't qualify for the full exclusion, they might qualify for a partial exclusion if the reason you sold is due to a qualifying hardship.
