Submitted By: Patti
Answered: July 30, 2013 8:30 am

My fiancé and I each own a home that has appreciated considerably in value. Do we need to sell the homes before we get married in order to maximize the home sale exclusion?

If you sell before or after you marry and the sales take place in the year of your wedding, on a joint return you can each use the $250,000 home exclusion. However, if either excludes less than $250,000, the unused exclusion amount cannot be used by the other spouse.

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Tax Glossary

Gross receipts

Total business receipts reported on Schedule C or Schedule C-EZ before deducting adjustments for returns and allowances and cost of goods sold.

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