Level 3

For home exclusion, can surviving spouse use signing date of purchase & sale agreement

Forum|Forum|3 years ago
March 2, 2023
2 replies
21 views

Surviving spouse is selling home that qualifies for home sale exclusion. Husband died April 4, 2021. Signing purchase & sale agreement April 4, 2023 but closing after April 4, 2023. Can she still qualify for the $500,000 exclusion?

If not, is a partial exclusion for deceased spouse available if surviving spouse's health has rapidly declined and can no longer live alone?

Lacerte Tax

This topic has been closed for replies.

Accountant-Man

Level 13

I THINK it is closing date, not contract date, so that might be lost; however,

does surviving spouse get a step-up for half the house? That might eliminate any gain over $250,000 for the surviving spouse.

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qbteachmt

Level 15

"If not, is a partial exclusion for deceased spouse available if surviving spouse's health has rapidly declined and can no longer live alone?"

It depends on when the surviving spouse moved out, and where that person moved to, for whether they still are eligible for their own exclusion. Is that what you are trying to ask with this question? Otherwise, the answer would be No.

A property isn't sold until the sale is Closed. Signed sales agreements fall through too often.

Is the taxpayer in a community property state? How was the property titled (name(s) on the deed)? Is it in a trust (what type)?

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