Sale of home by widow

Husband dies in 2010, widow sells home in 2012 after jointly owning it for 33 years. Does she get the $500K tax exclusion or the single rate $250K?

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bw

Reply to
bh2os62
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years. Does she get the $500K tax exclusion or the single rate $250K?

As for the $500 vs $250 question, specific dates matter. If the sale was within

2 years of the husband's death, $500; otherwise $250. There are, of course, all sorts of "ifs." See Publication 523.

Remember that unless she was the sole owner of the home her basis changed after his death. See Pub 551.

Phil Marti VITA/TCE Volunteer Clarksburg, MD

Reply to
Phil Marti

wrote

The short answer, single $250,000.

But, depending on how the home was titled, she gets a step up in basis on his ownership (half is my guess) as of the values on his date of death.

Reply to
paulthomascpa

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