- The sale needs to take place no more than two years after the date of death of the spouse.
- Surviving spouse must not have remarried as of the sale date.
- The home must have been used as a principal residence for two of the last five years prior to the death.
- The home must have been owned for two of the last five years prior to the death.
- Survivor can count any time when spouse owned the home as time they owned it and any time the home was the spouse’s residence as time when it was their residence.
- Neither spouse may have excluded gain from the sale of another principal residence during the last two years prior to the death.
Monday, October 10, 2016
Special consideration is made by IRS for the sale of a jointly-owned principal residence after the death of a spouse. Surviving spouse may qualify to exclude up to $500,000 of gain instead of the $250,000 exclusion for single people if certain requirements are met.
Posted by Triplett at 7:18 AM