Capital Gains

Rstuartd · ‎November 16, 2022

I sold my home in California in February 2022. My capital gains were over $250k. I am getting married in 2 weeks. Can we file jointly and be exempt from the 1st $500k capital gains or since I’m marrying after the sale of the house am I only except on the 1st $250K?

Thank you.

OmM1 · ‎November 16, 2022

Hello Rstuartd

Thank You for reaching out.

Capital gains exclusion on home is limited to 250K, if you are filing single and 500K if you are Married Filing Jointly.

For the purpose of taxes, your marital status on Dec 31 of the the tax year is the relevant/deciding date, so as long as you are married on Dec 31 of the year you had capital gains from sale of home, you will be entitled to exclusion amount of up to 500K from home sale gain.

Hope this answers your question and helps,

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