Can i switch my main home in NJ own by wife and I to my rental property in state of NY only own by me, to save on capital gain from future sale of this rental property?

Forum|Forum|4 years ago
April 16, 2022
1 reply
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wife is keeping main home address in NJ, I be moving to NY as my main home, currently filing joint do I need to change filing status to single? TIA

TurboTax Online

ColeenD3

You can't exclude the sale unless both of you meet the qualifications for each house if you file jointly. If you file separately, you are eligible for up to $250,000 if you meet the qualifications. You can't file as single if you are married.

If it becomes a rental, you will have to recapture any depreciation and still meet the qualifications.

Single, married filing separately

You meet the residence, ownership, and look-back requirements. PUB 523

geosueAuthor

I forgot to mention my ownership is a third between my 2 other brothers. It was transfer to us from our parents when we were kids. Also the rental is a 3 family home I be moving back in 1 apartment and still renting out the other 2. My other 2 brothers are considering to move back in with me and there main home currently is NJ as well. Would the capital gains sale of this property be different being a partial rental property?