Home Sale Tax Break
February 7, 2007
In an e mail today from the Inman News Newsletter, Robert J. Bruss clarifys one of the questions homesellers often have in regards to the IRS regulation that permits a $250,000 or $500,000 gain to be excluded from the capital gain tax on the sale of a primary residence.
The question comes when one spouse holds title to the property, sometime during that spouse's ownership, he/she got married but did not put the new spouse on title. Which exclusion will apply, $250,000 or $500,000?
Providing both spouses meet the primary residence and 2 year occupation tests, and neither spouse has sold a primary residence within the past 2 years, the $500,000 exclusion will apply.
IRC 121 does not require the name of both spouses to be on the pricipal residence title. For full details, please connsult your tax advisor.
In an e mail today from the Inman News Newsletter, Robert J. Bruss clarifys one of the questions homesellers often have in regards to the IRS regulation that permits a $250,000 or $500,000 gain to be excluded from the capital gain tax on the sale of a primary residence.
The question comes when one spouse holds title to the property, sometime during that spouse's ownership, he/she got married but did not put the new spouse on title. Which exclusion will apply, $250,000 or $500,000?
Providing both spouses meet the primary residence and 2 year occupation tests, and neither spouse has sold a primary residence within the past 2 years, the $500,000 exclusion will apply.
IRC 121 does not require the name of both spouses to be on the pricipal residence title. For full details, please connsult your tax advisor.
posted by shirley harry at 8:28 AM
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