Question

My Husband and I separated in September, and sold our house. Do I need to claim this sale in my taxes? We lived in the home 4 years prior to selling.

Forum|Forum|7 years ago
June 3, 2019
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Employee

Assuming the capital gain was less than $500,000, the sale does not need to be reported on any tax return. However, if a form 1099-S was issued, the IRS will be looking for it to be reported. You and your spouse need to coordinate how much each will report.

The maximum gain exclusion for an individual taxpayer is $250,000. Taxpayers who jointly own a principal residence, but file separate returns, may each exclude up to $250,000 of the gain attributable to their interest in the home. A husband and wife who file a joint return may exclude up to $500,000 of the gain