DEAR BOB: Since my divorce about 16 years ago, I've lived in my home alone. During that time, my home has greatly appreciated in market value. If I sell it today, my capital gain will be around $400,000. But, as a single person, I would only be entitled to a $250,000 tax exemption and would have to pay capital gain tax on about $150,000. For the last few months, my "significant other" has been living with me. If we get married, will I then become entitled to the $500,000 home-sale tax exemption for a married couple? – Edward F. DEAR EDWARD: No. But you certainly have a creative tax mind. Internal Revenue Code 121 provides a principal residence sale tax exemption up to $250,000 for each qualified home seller. To qualify, you must have owned and occupied your principal residence an "a...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.