Claifying Home Sale Limiits
From an interested reader:
Subject: Re: outsourcing to IndiaMr. Kerstetter,Just a note to say I liked what you said on June 12 about outsourcing. I support anything that promotes an informed consumer. I feel the same way about genetically modified foods. I have no problem buying and eating them, but will support anyone who bothers to put that information on the label because it increases my choices.Also, on the 11th you told a couple they would each qualify for the exemption on their home sales. You might want to add that it is a per person exclusion, not really a 500k per couple exclusion. In other words, if they were hoping that if one fell short of the exemption the remainder could be credited toward the other, they are out of luck.
That was the point I was trying to make regarding the tax free home sale exclusion; but your explanation makes it even clearer that each spouse's exclusion stands alone and they can't be added together in the way that you mentioned.
Thanks for writing.