Sec. 121 Exclusion

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  • Brian EA
    Senior Member
    • Dec 2005
    • 786
    #1

    Sec. 121 Exclusion

    Taxpayer purchased personal residence in 2000 for $170K and made several upgrades totaling $73K.
    She got married in 2016 and added spouse's name to the deed.
    Spouse passed in 2021 and name was removed from the deed.
    House was sold in November 2025 for $599K (net sales price).
    Can the taxpayer take the full exclusion of $500K?
    Thanks for your input.
    Brian.
    Everybody should pay his income tax with a smile. I tried it, but they wanted cash
    Tags: None
    • Lion
      Senior Member
      • Jun 2005
      • 4716
      #2
      No, because the sale was not within 2 years of spouse's passing. However, 1/2 house received a step-up at spouse's passing (if non-community property state).

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        • Brian EA
          Senior Member
          • Dec 2005
          • 786
          #3
          Thanks Lion.
          Everybody should pay his income tax with a smile. I tried it, but they wanted cash

            Comment

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