Retaining home capital gain exemption after moving out?

After not being able to drive, I moved from my home to an "independent living facility." My wife remained in our home. Although I am "independent" in the sense of not having any personal care given to me for daily functioning, I still rely upon the facility to provide food, medical transportation, and other such services that would otherwise be difficult to obtain. I can get around by public transportation. It would be very difficult to function if I remained in my home. Moreover, much of my accumulation of stuff is still at the home.

My wife may soon need similar services and maybe some personal care as well. Under those circumstances, it would make sense to sell the home. Am I going to lose my portion of the capital gain exemption if that is long-delayed? Is there any useful strategy to follow in order to retain that exemption?

Reply to
Salmon Egg
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You asked a very similar question back in November. You got a reply by Stuart Bronstein that I corrected as Stuart had misinterpreted one part of the law.

If you want the $500K exclusion one of you must meet the ownership rule and both of you must meet the use rule. If "you" can't come up with the two out of five year use test, then you can't get the $500K exclusion. If you have some use (less than two years but more than zero use) and the reason is health driven, you may get a partial exclusion.

See the November posts (Subject was: Retaining homeowner capital gain exclusion) and IRS Pub 523.

Reply to
Alan

I do remember my posting such a question. I do not remember the answer being so clearer. The two lines in [] brackets do make it clearer.

Reply to
Salmon Egg

In addition to the health reasons, certain "Unforeseen Circumstances" may allow a lowered exclusion amount.

Reply to
Arthur Kamlet

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