RE: Sale of Primary Personal Residence: do both spouses have to meet the 2 year residence on a joint return in year of sale? Thank you. Dve Barcklay

Forum|Forum|6 years ago
December 7, 2019
4 replies
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Lacerte Tax

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Best answer by itonewbie

In order for the maximum exclusion of $500k to be claimed, either spouse must meet the ownership test but both spouse must meet the use test and neither spouse must have claimed §121 within the last 2 years. Otherwise, the exclusions must be separately determined for each spouse and each spouse is treated as owning the property for period either spouse owned the property. In the event the taxpayers sold the home due to a change in the place of employment, health, or unforeseen circumstances, the spouse who did not meet the ownership and use tests may, however, be eligible for a reduced exclusion.

Just-Lisa-Now-

Intuit Community Champion

Its a 250K exemption per person, so if only one of them meets the qualifications, they only get the 250k exempt for the one that qualifies.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

E

Ephesians3-14

Level 7

Sounds like your question might have been...
Husband bought the house before he was married, then got married and lived in the house for 11 months, at which time BOTH the husband and wife sold the home.
And you're asking whether they can take the full $500,000 exclusion since they both sold it (notwithstanding the fact that the wife only lived in the home for 1 year) Is that correct? If not, please elaborate on the facts.

M

Marc-TaxMan

Level 7

Maybe they shacked up (in this home) for 2 years before they married. That would allow 2 exclusions.

itonewbieAnswer

Level 15

In order for the maximum exclusion of $500k to be claimed, either spouse must meet the ownership test but both spouse must meet the use test and neither spouse must have claimed §121 within the last 2 years. Otherwise, the exclusions must be separately determined for each spouse and each spouse is treated as owning the property for period either spouse owned the property. In the event the taxpayers sold the home due to a change in the place of employment, health, or unforeseen circumstances, the spouse who did not meet the ownership and use tests may, however, be eligible for a reduced exclusion.

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