Selling my primary residence in a foreign country. Owned by myself, my wife and my brother. Can I take primary residence exemption as my brother is 50% owner?

Yes, you and your wife can still claim the primary residence exemption for your share of the property, even though your brother is a co-owner. Here's how it works:

1. Ownership and Use Tests: To qualify for the primary residence exemption under U.S. tax law (Section 121), you must meet the ownership and use tests. 

• Ownership: You and your wife must have owned your share of the property for at least two of the five years preceding the sale.
• You and your wife must have lived in the property as your main home for at least two of the five years before the sale.

Be sure to report the basis and the sale of the home on your 50/50 share and not the entire amount.