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  1. #1
    Join Date
    Mar 2018
    Posts
    1

    Default Home Selling and Capital Gains Exclusion

    Married couple will have lived in home for 2 years in May 2019. But prior to today (March 8) they were on title with mother in law as joint tenants. Can they sell in May 2019 and get the full $500k exclusion or do they have to wait until they are alone on title for 2 years?

  2. #2
    Join Date
    Sep 2010
    Posts
    19,609

    Default Re: Home Selling and Capital Gains Exclusion

    They get the full exclusion even if the mother-in-law was still on it when they sold it.

  3. #3
    Join Date
    Oct 2014
    Posts
    7,861

    Default Re: Home Selling and Capital Gains Exclusion

    Quote Quoting flyingron
    View Post
    They get the full exclusion even if the mother-in-law was still on it when they sold it.
    To clarify, if the mother-in-law holds an interest in the property at the time of the sale the married couple is eligible for the full exclusion on the gain from their interest in the property. Whatever share of the proceeds is attributable to the mother-in-law’s interest goes to the mother-in-law and the gain from that is of course the mother-in-law’s responsibility. If she was not living there she would not be eligible for any gain exclusion.

    Bwilso, your post suggests that the mother-in-law is being removed from the title to the home. How is that being done? Is the married couple buying out her share, is she giving it to them as a gift, or what?

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