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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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.
Only she is listing sale on tax return
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.
"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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