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joint home was sold in year of divorce in both names.

ingridsorenson
Level 3

The escrow is in both names and the home was sold in year of divorce. Both lived in it for more than 10 years. How can I get the $500,000 exclusion for my client who files HOH

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Accepted Solutions
Michael
Level 2

Regardless of what the closing disclosure or 1099-S have on them, your client is not entitled to a $500,000 exclusion. That $500,000 is a combination of both spouses' $250,000 exclusion. 

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6 Comments 6
IRonMaN
Level 15

Why would your client get the full exclusion and the ex get zilch?


Slava Ukraini!
ingridsorenson
Level 3

Only she is listing sale on tax return

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BobKamman
Level 15

I hope you're not going to sign that one.  

IRonMaN
Level 15

Your client is SOL on qualifying for the $500,000 exclusion.


Slava Ukraini!
Michael
Level 2

Regardless of what the closing disclosure or 1099-S have on them, your client is not entitled to a $500,000 exclusion. That $500,000 is a combination of both spouses' $250,000 exclusion. 

qbteachmt
Level 15

"Only she is listing sale on tax return"

The way one person gets the double-exclusion is for the other to Die:

"...allows a surviving spouse up to two (2) years from their spouse's date of death of to exclude up to $500,000 of gain from the sale of their primary residence."

So, they should undo the divorce, obviously. Then he must die (hey, I didn't state she had to be the one to make it happen). Then sell the house and still file jointly.

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