Don’t rush to sell home after spouse dies

Co-owner fears losing home-sale tax break

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DEAR BOB: My husband has a terminal illness. I wonder how long I have after he passes away to take advantage of his $250,000 principal-residence-sale tax exemption. We have owned our home for 30 years and have no mortgage but a lot of equity, thanks to market-value appreciation. I want to stay in the home for a while, but I don't want to miss out on his exemption. --Geri D. DEAR GERI: Please don't rush to sell your home after your husband passes on. Making quick decisions after the death of a loved one is often a major mistake. Purchase Bob Bruss reports online. If you sell your home in the tax year of your husband's death, you can still use the $500,000 principal-residence-sale tax exemption for a married couple, thanks to Internal Revenue Code 121. That's presuming you both met the 24-out-of-last-60-month occupancy requirement and title is held in at least one spouse's name. You should be aware that if he leaves his half of the house to you, as I presume he will, you then receive...