How to decrease capitol gains tax after selling our only houese

Forum|Forum|3 years ago
October 12, 2022
2 replies
3 views

My husband died in 2020 and I sold our house in 2021, no one lived in that house and it was the only house that we owned. I was living in an RV. Can I claim that as my primary residence?

And how do I best minimize the taxes?

Critter-3

Level 15

Was that your primary residence for 2 out of the 5 years prior to the sale ? Did you have it homesteaded for RE tax purposes ?

Mike9241

Level 15

who was on the title on the date your husband died? if just him, the property would get a step-up in basis to FMV on the date of death.

if both of you 50% would get a step-up to FMV and your 50% would be 1/2 the tax basis. if you lived in it any 2 out of 5 years before the sale your portion would qualify for the home sale exclusion. there is a special rule for surviving spouses. as such, you are entitled to a $500,000 exclusion on any taxable gain since the home was sold within 2 years of his death.

Mike9241