My wife and I were married in December of 2003. Due to work locations we each had our principle residence in different cities. In July of 2004 she moved into my residence which I have owned and lived in for over fifteen years. In July of 2005 my wife sold her former principle residence. She met the ownership and use tests for the $ 250,000 exclusion on her old home and the closing agent did not issue a 1099 for the sale and it was not reported on our tax return for 2005. In May of 2006 we will purchase a new residnece and title it in joint name. My question is this, when I sell my old principle residence shortly which meets the ownership and use tests can I use the $ 250,000 exclusion on it even though my wife did the same on her old principle residence less than two years ago? Thanks in advance for any advice on this matter.
Comment