Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: belwah Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120829  
Subject: Home sales after marriage Date: 3/6/2000 5:08 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
My fiance and I each own a home, and we've each lived in our respective homes for over two years. Both homes have appreciated in value since we bought them, but by less than $250,000 each. We plan to marry in January 2001. AFTER we've married, my fiance plans to sell his house and move into my house (in early 2001). In early-to-mid 2002, we plan to sell my house and buy a larger house together (need room for the hoped-for family! :-) ).

My question is, will we be able to use the $250,000 exclusion from capital gains for the sale of his home in 2001 AND the $250,000 exclusion from capital gains for the sale of my home in 2002? Or, will we have to pay capital gains tax on the gains from the sale of one of those homes? [If we would have to pay capital gains tax under this scenario, is there any scenario under which we would not have to pay it - other than a) his selling his house before we marry or b) our waiting two years to sell my house?]

(I ask this because the IRS examples in their instructions for the home sales form refer to home sales BEFORE two individuals marry, not AFTER they marry, so I'm not clear on whether we'll be able to take both exclusions.)

Thanks!
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Feste Award Winner Announced!
Congrats to the Winner of the 2013 Feste Award!
Post of the Day:
Berkshire Hathaway

Why Should Berkshire Hathaway Survive?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement