Couple now married - Two seperate homes - now living together

[thetaxman2200]

Good Morning,

I have two clients who where single until September of this year, she is going to sale her house with a rough gain of $70,000 and move into his house. Does she have to claim the capitla gains? She meets the other requirements if she would have purchased another home. I do not think she has to but I wanted to get advice from the group.

Thanks

Brian

[appelman]

I don't think her marriage is an important factor, regardless of how she files.

If she meets the two-out-of-five ownership and occupancy tests, she gets a 250K exclusion.

[FEDUKE404]

Meets rules

Agree with appelman - the major issue is does the WIFE (independently) meet all of the rules for excluding gain from the sale of her former house. If so, take the money and run.

I don't quite follow the "would have purchased another home" issue you raised?

FE

[JohnH]

I had that same question. I was wondering if the reference was to the rules which were in effect about 20 years ago when we had to track gain and adjust basis of each successive home. I couldn't see how anything related to "another home" had any effect on this situation.

[thetaxman2200]

She is moving into her new husbands home - I am assuming that she can take the exclusion.

Thanks

[mlinderEA]

Home exclusion

It does not matter where she moves or what she does.She still gets the exclusion if she qualifies.