I plan on selling my home in New York and buying a less expensive home in South Carolina. My husband and I have lived in this home for over 10 years. We file joint tax returns, but I am the sole owner of the house in New York. Do we each qualify for the $250,000 capitol gains tax exclusion? Meaning will we have an exemption of up to $500,000, or is it only $250,000?

ANSWER

The BIDaWIZ Team's Answer:

Yes, you would be eligible for the $500,000 capital gains exclusion since you meet all of the requirements. Specifically, one of you owns the home, you both used the home, you file joint returns and you didn't have a sale or exchange of a home within the last two years. This is referenced in Internal Revenue Code Section 121(b)(2)(A) and IRS publication 523.