Farm/Main Home Sale

[MGC94]

Client owned an income producing farm. Filed a schedule F. Their farm is also their main home address. They sold for $700,000. MFJ. Sold their main home over 20 years and moved. How do I report this sale? 

Home was in spouse's name, not in taxpayer's name. They file MFJ, but the house is only in the spouse's name. Do they get $500,000 exclusion, or only $250,000 because it's in her name?

[Norman2001]

Either spouse can meet the ownership requirement to get the $500k exclusion

§121(b)(2)(A)(i)

[dkh]

Don't forget to allocate part of the sale to the farm buildings and land.  Depreciated buildings do not fall under the principal residence exclusion