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jerrman
New Member

We are married and looking to file separate returns. Can each of us take advantage of the $250,000 capital gains rule on sale of home or do we need to file joint?

Capital gains exceed the $250,000 threshold.
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Coleen3
Intuit Alumni

We are married and looking to file separate returns. Can each of us take advantage of the $250,000 capital gains rule on sale of home or do we need to file joint?

Yes, you can take advantage of the $250k each by filing MFS.

How your sale qualifies.   Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.

  • You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
  • You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
  • You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.

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1 Reply
Coleen3
Intuit Alumni

We are married and looking to file separate returns. Can each of us take advantage of the $250,000 capital gains rule on sale of home or do we need to file joint?

Yes, you can take advantage of the $250k each by filing MFS.

How your sale qualifies.   Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.

  • You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
  • You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
  • You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.
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