Level 3

Question

Newlyweds sell both former homes in 2022

Forum|Forum|3 years ago
March 31, 2023
2 replies
22 views

Situation: Newlywed couple each lost their spouses in 2021. Found each other and remarried in 2022. Each sold their homes owned with deceased spouses and they purchased a new home together in 2022.

Question: How do I show that these are two separate principal residences so they each get the cap. gain exclusions? Not a lot of cap gain for either one. Is this possible?

Thanks in advance.

ProSeries Professional

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Intuit Community Champion

Intuit Community Champion

work through 2 separate Homesale Worksheets.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Intuit Community Champion

Intuit Community Champion

They should each be entitled to 250k irc 121 assuming all other conditions apply to each. Edited to correct

If at first you don’t succeed…..find a workaround

Level 15

If you remarry you can only get $250K. So each could get a $250K exclusion.

The more I know the more I don’t know.

Level 8

Did they remarry before the sale? That tells you whether they qualify for 250K or 500K each.