Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
To qualify for the exclusion under IRC 121, you need to own the house for two out of the 5 years before the sale and you need to have used the house as your principal residence for 2 out of the 5 years before the sale.

The house was sold on 5/15/09, so the relevant 5 year period is 5/15/04 through 5/15/09. Your husband use the house as his principal residence from 1997 until June 2006. So for the two years from 5/15/04 to 5/15/06, it was his principal residence. And he has owned the house for the entire time. So he meets the tests and may exclude up to $250k of gain.

On the other hand, it appears that you never used this house as a principal residence. So you do not qualify for any exclusion.

On a joint return (or on his separate return) he could claim up to a $250k exclusion.

Print the post  


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.