Sales of a home $5000 exemption

[B_A]

The client sold her  home, her husband died in 2019. Capital gain 539K. Isn't  she suppost to get the $5000 exemption on her tax?

[Just-Lisa-Now- · Accepted solution]

Theres a 250k exclusion per person when you sell your principal residence if youve lived in it for 2 out of the last 5 years...is that what youre asking about?

Research IRC Section 121

[BobKamman]

No, I think the question asks about the $5K widow's exemption that was repealed in 1996. 

You can't get the message to all of the people, all of the time.  

[IRonMaN]

1996 vs 2019 - that's pretty close.  Maybe the IRS will let it slide this year.   I wonder if they would be better off income averaging (as long as we are opening obsolete tax laws 😉 )

[Just-Lisa-Now-]

I just had someone ask me about income averaging last week!

[BobKamman]

They wouldn't have to income average if they would just reinvest.  

[George4Tacks]

Hi there,

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Cheers!

[B_A]

Hi Lisa,

Yes, that's what I was researching! I typed 5k instead of 500k. I got it now!

Thank you!

[B_A]

Thank you !!