3122541
This question was MOSTLY answered in a previous thread (Gains on Houses in Year of Marriage) but one element was not fully answered.
My wife and I got married and also sold both of our homes this year (2023). We had each separately owned and resided at our respective homes for 2 of the last 5 years. While I understand that this meets the ownership and residency requirements for the capital gains exclusion from the profit of an individual home sale, I'm wondering if that means we need to file as MFS because as a couple, we would not meet the residency requirements of the other's home? Meaning, my wife did not live at my home for 2 of the 5 prior years before I sold it and I did not leave at her home for 2 of the 5 prior years before she sold it. Also, because if we file as MFJ we'd be claiming the exclusion on two homes within the same year and from what I've read, there needs to be a two-year window between exclusion claims in order to qualify.
If anyone can help that would be most appreciated.
You'll need to sign in or create an account to connect with an expert.
See https://www.journalofaccountancy.com/issues/2002/oct/thehomesalegainexclusion.html
Note that each taxpayer's eligibility for the (up to $250,000) exclusion is evaluated separately.
Thanks! That definitely helps to clarify the issue for me. Happy to know that we can file jointly but still calculate the capital gains separately.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Vidyaprakash54
New Member
meade18
New Member
naiomi82
New Member
mysmartloan19
New Member
CourtneyDee
New Member