If me and my mother buy the house and live there for two years as a primary residence. Can we qualify for the $500,000 capital gains tax exemption that married couples qualify for? What about an unmarried couple in general?
The $500,000 limitation applies only to a married couple filing jointly. For all others, the limit is $250,000 per tax return. Since you and your mother would not be filing with each other, you would EACH qualify to exclude up to $250,000, assuming that neither of you is married.
Author:
Time:
Saturday, December 6th, 2008 at 1:40 am
Category:
Comments:
You can leave a response, or trackback from your own site.
RSS:
You can follow any responses to this entry through the RSS 2.0 feed.
Navigation:
November 1st, 2008 at 2:10 pm
You and mom would each qualify for 250K per person. If there was another sibling living there also, then he or she would also qualify, so you could exclude up to $750K.
Helen, EA in PA
References :
November 1st, 2008 at 4:23 pm
The $500,000 limitation applies only to a married couple filing jointly. For all others, the limit is $250,000 per tax return. Since you and your mother would not be filing with each other, you would EACH qualify to exclude up to $250,000, assuming that neither of you is married.
References :
November 1st, 2008 at 5:30 pm
Uh, no, you aren't a married couple. But if you each own half interest in the home, you could each exclude up to $250k of capital gain, so it amounts to the same. If your ownership isn't 50% each, you have to allocate the gain based on each person's ownership.
References :
November 1st, 2008 at 7:06 pm
You do not get married people benefits. You get 250k each for single. I would not expect any house you get to go up by that much in 2 years anyway.
References :