Some widows and widowers thinking of selling their home may benefit from a new law enacted last month. The new law effectively gives them more time to sell and still be eligible for the maximum home-sale tax break available for married couples who file jointly. This change is effective on sales or exchanges beginning this year. Congress passed the new law to provide relief for surviving spouses.
The new law includes an important change: A surviving spouse who hasn't remarried typically may be eligible to claim the full $500,000 exclusion from the gain on the sale of a principal residence owned with the deceased spouse if the sale occurs not later than "two years" after the date of death of the spouse.
The new law includes an important change: A surviving spouse who hasn't remarried typically may be eligible to claim the full $500,000 exclusion from the gain on the sale of a principal residence owned with the deceased spouse if the sale occurs not later than "two years" after the date of death of the spouse.