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Sale of two primary residences

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  • Sale of two primary residences

    Hi all — just got married in 2021. Wife and I each have our own primary residences under our own names because purchased before marriage. Bought and moved into new primary residence together 2021. Selling our old homes as a result. Selling/sold 2022. How best to approach this in the sales and with title companies given as my understanding is that we are exempt from capital gains for sale of primary home under 250k single 500k with exemption only once every two years. Given the timing of things it is unclear if it applies to both the gains of both homes sold. Thanks all.

  • #2
    Good question. CPA should have this answer. File separately perhaps for year one?


    • #3
      The way I think this works is that neither spouse meets the requirements for exclusion for the other’s previous primary residence so each are entitled to their own $250K exclusion. This may be done on either a joint return or separate returns. Here’s a link to JK Laser’s take. See the paragraph labeled “Separate Residences.”