Question: Claiming the capital gains exemption when you sell your home?
I sold a home in 2008 and claimed the house selling exemption for my capitol gains and at that time I was single. I got married last year. Before we got married my spouse sold her home and made a profit on it. We are now filing a joint return. Can we claim the capitol gains exemption since she was single at the time she sold the home?
That’s a really good question! You should look through the IRS publication below on this subject, and there is an example in there that I believe is on point. (Example 1 under “married persons”, about halfway down). Based on this I would say you can definitely use the exlusion (just the $ 250K) and you can do so filing seperately or jointly (not legal advice). Good luck on the return! http://www.irs.gov/newsroom/article/0,,id=106951,00.html
Add your own answer in the comments!