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Tax Guru-Ker$tetter Letter
Sunday, June 11, 2006
Home Sale By Newly Married



Subject: Love your blog; have a question

Hi Kerry - I've been reading your blog this evening trying to see if you've already answered this question... I can't seem to find it answered already, so here goes:
My partner and I are planning to get married.  Each of us owns a primary residence (I've owned my house about 4 years; he's owned his house 2 years.) We'd like to sell both houses this year, and we each want to be able to take advantage of the primary residence exemption from capital gains tax.
The question:  can we sell the houses and get married in the same year (and still have the tax benefits on our real estate sales)?  or do we need to wait to get married until next tax year?
Thanks in advance!


Whether you are married or not won't make any difference. 

If you each meet the tests for your respective residences, you will each qualify for the tax free exclusion of up to $250,000 of profit, either on a joint 1040 or on two separate ones.

You can see more on this issue in the IRS's Publication 523

Your own personal professional tax advisor can give you more specifics for your particular situation.

Good luck.

Kerry Kerstetter


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