Sale of Home

[kbcobb]

My husband died Jan 6 2023. I filed 2022 taxes that April jointly. I filed 2023 taxes Single or either Qualified Spouse. This year TT suggests filing Single. In May 2024, I sold our home. I was Single/WIdowed then but house was owned jointly. I did not get a 1099-S. When reviewing info on capital gains exclusion, would I qualify for the $250,000 or $500,000 exclusion or eligible for either? Purchased home in June 2002 for $204,000. Primary residence until it sold in May 2024 for $526,000. Mortgage pay-off to Truist was approx $186,000. I'm very confused!! If I didn't get a 1099-S does that mean I don't worry about reporting the sale?

[DavidD66]

Since you did not receive a Form 1099-S, you may not have to report the sale of your house.  If you are eligible to exempt all of the gain and did not receive Form 1099-S, you do not have to report the sale.  You may be able to increase your exclusion amount from $250,000 to $500,000.  According to IRS Publication 523:  

You may take the higher exclusion if you meet all of the following conditions.

1. You sell your home within 2 years of the death of your spouse;
2. You haven’t remarried at the time of the sale;
3. Neither you nor your late spouse took the exclusion on another home sold less than 2 years before the date of the current home sale; and
4. You meet the 2-year ownership and residence requirements (including your late spouse's times of ownership and residence, if applicable).

Based on what you stated in your question, you qualify for an exemption and you also qualify for the higher ($500,000) exemption; therefore, you do not need to report the sale on your tax return.  

[kbcobb]

Thank you!