capital gains questions

1. Only one spouse has to be on the title to claim full MFJ exemption of 0K, but both spouses have to have lived in the home at least 2 of the last 5 years.
2. Not necessary to change title.

1. Not sure what you mean by a transfer tax. Married people can gift an unlimited amount of property to one another with no gift tax consequences, if that's what you're asking.

Under section 121 you get the $500,000 exclusion if either if you owned the home and both of you lived there for the requisite time period.

N/A

You don't say what state you are in, and that could make a difference. In California transfers between spouses are exempt from the documentary transfer tax. Stu

Q1. As long as they are 1. filing a married filing joint tax return, 2. the home was the principal home of both of them for at least 2 of the last 5 years, and 3. neither spouse has sold a home more than once every 2 years, then the wife is treated as also owning the home so together they get the $500,000 exclusion on their joint tax return, Q2. See Q1 above.

Q3. Sorry, I don't know.

We're living in Maryland. I've gotten conflicting answers from different people at my county land records office. What a surprise. I do get the impression though that there are no transfee taxes to be paid since there is no actual sale of the property taking place. Thanks everyone for your input.

Moderator: Just sell the house. Adding your wife's name is not needed.