Agent

Do we qualify for $500K home-sale tax break?

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DEAR BOB: I have been married 13 years. When we married, my husband moved into my home where we still live. I never added his name to my title, although his name is on the mortgage loan. We plan to sell the home in 3 1/2 years and use the money to build a home in North Carolina as our new residence. Will we have a problem with the home-sale tax exemption if we do not add my husband's name to the title before selling our home? --Anita D. DEAR ANITA: Presuming your husband continues to behave himself, and you both meet the 24-out-of-last-60-months-before-sale, principal-residence occupancy test of Internal Revenue Code 121, and if you file a joint income tax return in the year of the sale, up to $500,000 of your principal-residence-sale capital gains will be tax-free. Purchase Bob Bruss reports online. IRC 121 does not require the names of both spouses to be on the principal residence title. For full details, please consult your tax adviser. HOW TO CLEAR TITLE OF DECEASED CO-OWNER'S...