Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I'm familiar with the need to live at least 2 of the last 5 years in your home to be able to avoid (some/all) of capital gains on a home sale so I don't want to revisit that topic.

I would like to know if someone can point me to a document explaining how that 2 years is determined if you were married and if one person was living in the home, but the other person was working/living out of state? (And assume the parties stayed married, were not legally separated, etc. The separation was only due to a job situation.)

Say for example, 12 months both people were living in the house but the next 12 months, the wife was living there but the husband moved out of state for a job and spent the majority of his time in that state.

I've tried a decent amount of searching online but haven't come across anything useful so far.

Do you have to do something weird and file taxes separately and only get a prorated break? I can see the IRS arguing you didn't live their the full 2 years so you shouldn't get the break. I'm not saying what it should be, just trying to figure out what it actual is according to IRS documents.
Print the post  

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.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.