How long do I need to be married to qualify for the 500K the real estate exclusion?

Forum|Forum|7 years ago
June 1, 2019
2 replies
0 views

We both have lived in the same property as our primary residency for over 5 years. The property is under my name and we are getting married. I just need to know if there is a "waiting period" before selling, or is it enough just to be married prior to the sale (even for a week) as long as the marriage happens is in the same tax year where the sale takes place? I also assume there is no need to add the second person to the deed before selling. We are in NY. Thanks.

Best answer by SweetieJean

$500,000 Exclusion for Married Couples

There are certain additional requirements you must meet to qualify for the $500,000 exclusion. Namely, you must be able to show that all of the following are true:

you are married and file a joint return for the year
either you or your spouse meets the ownership test
both you and your spouse meet the use test, and
during the 2-year period ending on the date of the sale, neither you or your spouse excluded gain from the sale of another home.

S

SweetieJeanAnswer

Employee

$500,000 Exclusion for Married Couples

There are certain additional requirements you must meet to qualify for the $500,000 exclusion. Namely, you must be able to show that all of the following are true:

you are married and file a joint return for the year
either you or your spouse meets the ownership test
both you and your spouse meet the use test, and
during the 2-year period ending on the date of the sale, neither you or your spouse excluded gain from the sale of another home.

J

jsc201603

Employee

Good answer - filling in the one unspecified piece of information, you could have gotten married December 30 and closed the sale December 31 and still qualify, provided that each of you had used the house as your primary residence for 2 of previous 5 years, up to date of sale. Test is use, not marital status. (Doesn't require the same two years)