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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Sale of Personal Residence - Wife or no wife
Expert: Carole Dunton
Date: 8/30/2008
Subject: Sale of Personal Residence - Wife or no wife
Question
I was previously married and divorced...several years later, in 1988, I bought a house in my name "as a single man", a year later my wife and I reconciled and she moved into the house with me, where we have lived together since. However, we have never remarried and we filed our tax returns separately all these years. Our separate tax returns will show that we lived together at the same address since 1989.
We now need to sell the home and have more about a $500,000 gain in value. I know the rule about the $250,000 sale of personal residence gain exemption if single and $500,000 exemption if married.
Is there any way that we can qualify for the $500,000 "married" exemption since we've lived here together "as man and wife" all these years. ....perhaps some kind of "common law marriage" designation....as I said, our individual tax returns would show this same address all these years.
If we can't claim married status and receive the exemption...and we got legally re- married, how long would we have to be married before we qualify for the exemption?
W.C.
Answer
Hi,
Since you weren't married and your wife was not an owner of the home, she could not claim an exclusion. If you remarry she could claim an exclusion if she is added as an owner because she did live in the home as her main home. There is no waiting period after you remarry and she is added as an owner.
Regards,
Carole
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