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I got married this year and I own a home I lived in alone for the past 10 years. Now that I’m moving into my spouse’s home, I plan to sell my old home before the end of the year. Should I file my taxes jointly with my spouse or separately to be eligible for the no capital gains tax eligibility of living in my home the majority (all) of the last 5 years? My concern is that if I file jointly, since my spouse did not ever live in my house, it would show no eligible residence in the past 5 years.
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You can file Married Filing Jointly and still get the capital gain exclusion of $250,000 on the sale of your home. Just because your spouse did not live in your home for at least two years does not mean you are not eligible for the $250,000 exclusion.
@user17523150919 your spouse is not eligible for the $250,000 exlcusion, but that doesn't mean you aren't.
File Joint. You should show a $250,000 exclusion for the home sale. Don't let TT provide a $500,000 exclusion. Just follow the questions and prompts CLOSELY.
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