Married Allowance CGT


Y

yazdi

The house we are selling shortly is owned by me alone, but I have been
married for a year. Having owned the home for many years I am fortunate
that the price has gone up by $400k. Capital Gains Tax exclsuion is
$250k for single and $500k for married.

If I file jointly, can we claim married persons exclsuion even if
legally I am the only owner of the house. Or shpould I be looking at
legally having my wife as joint owner before I sell?

I understand there is a "use" requirement of both of us living in the
house for 2 years, which we satisfy.
 
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A

Arthur Kamlet

The house we are selling shortly is owned by me alone, but I have been
married for a year. Having owned the home for many years I am fortunate
that the price has gone up by $400k. Capital Gains Tax exclsuion is
$250k for single and $500k for married.

If I file jointly, can we claim married persons exclsuion even if
legally I am the only owner of the house. Or shpould I be looking at
legally having my wife as joint owner before I sell?

I understand there is a "use" requirement of both of us living in the
house for 2 years, which we satisfy.


You are correct. If neither of you have used this exclusion on
other houses for at least two years, then if one of you meets the
Owned requirement and both of you meet the Lived in as Main home
requirement, you qualify for the 500,000 exclusion if you file MFJ.
 
P

Phil Marti

Mark Krugman said:
I think that the question is one of Ownership, as He owns the house that
They have lived in for sufficient time to qualify for MFJ deduction.
Does he need to change the deed prior to sale to include his wife?
No. Only one of the joint filers must meet the ownership test. Both must
meet the use and "only once every 2 years" tests. See Publication 523.
 
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A

Arthur Kamlet

I think that the question is one of Ownership, as He owns the house that
They have lived in for sufficient time to qualify for MFJ deduction.
Does he need to change the deed prior to sale to include his wife? Or is it
permissible for Them to share Their exclusion on His capital gains?
I would not add her to the deed, but claim the MFJ exclusion.
Mark Krugman
Tax Professional


Didn't I answer that question above?
 

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