Question

Sale of a home

Forum|Forum|1 year ago
March 29, 2025
2 replies
0 views

My spouse and I are married but separated. MFJ (so far).

I bought (7-1-25) and sold (10-24-25) a home in another state. My spouse was not involved in this house in any way. I lived there during that time, but shared a home with my spouse the rest of the year. Gain from sale is under $4000.

If I exclude this sale due to either Look Back or separation, and we sell our jointly owned home before 10-24-26, will we lose the exclusion on sale of a primary home? Or would the second sale still be eligible due either the separation or single vs joint ownership.

Not A Product Question

M

Mike9241

the home you bought in 7-24 ( 7-25 is impossible) does not qualify for the home sale exclusion because it was not your principal residence during the year, and only principal residences qualify for the HSE.

by law a principal residence is the one you lived in the majority of the year. you only lived in this one about 4 months while the other on about 8 months.

N

NCPERSON1

@EdAlbert you can't exclude the sale. You did not own it and live in it for 24 months of the past 60 months. At best, there is a short term gain of $4000 to be reported.