title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Tuesday, August 23, 2005
 
Residence Ownership

Q:

Subject: Sale of primary residence

I will appreciate if you can help me.

To take advantage of the $500,000 capital gain advantage, does the property have to be in both husband and wife's name or the requirement is that you should be filing a joint return.

Thank you.

 

A:

 
In order to claim the full $500,000 exclusion, you do have to file a joint 1040.

It is only required that one of the spouses had owned the home for two out of the previous five years.

However, it is required that both spouses occupied the home as their primary residence for two out of the previous five years.

If both spouses didn't meet the two-year use test, the amount of gain that can be excluded is pro-rated.

Your personal tax advisor can help work with real numbers for your situation.

Good luck.

Kerry Kerstetter

 


- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 8/23/2005 11:50:00 PM Send this post:

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