Marital Tax Exclusion on the Sale of a Home

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Under current tax law, married couples filing jointly can exclude up to $500,000 in capital gains when selling their primary residence. Most homeowners today likely have significant gains in their homes as housing prices continue to increase. This is an important tool.


Here’s How:

Both spouses must have used the home as their primary residence for at least 2 years.

Neither spouse may have claimed the home sale exclusion on another home within the 2 years leading up to the current sale. If one spouse did, the maximum exclusion drops to $250,000

This is an important thing to remember for those who wish to relocate and have highly appreciated primary residences.

Also Important:

The cost associated with selling a home. Realtors fees of ~ 6% plus transfer tax, closing costs, potentially a new mortgage at prevailing interest rates. This is not an inexpensive task, so be certain you know where you wish to be before embarking on this journey.

-Zac