Question
Principle residence exemption
A couple who have been my clients for few years, went thorough a divorce last year and the wife bought out the other (50%) share of the husbands portion of the house. So now she has a full ownership of the house. They both decided to keep me as their tax preparer. My question is, how do I declare the principle residence exemption for husband and do I have to declare anything for the wife?
Any help would be appreciated.
