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I bought a house in 2006 and my wife bought a house in 2006.

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I bought a house...

I bought a house in 2006 and my wife bought a house in 2006. We got married in 2015 and moved into her house. She sold her house in 2017 and we bought a house together. I know we qualify to have capital gains on her house excluded on taxes for 2017. I sold my house in 2018, but met the residence test. Can we file jointly and exclude capital gains both years on both properties?

Submitted: 5 months ago.Category: Finance
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2/6/2018
Financial Professional: Lev, Tax Preparer replied 5 months ago
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,122
Experience: Personal Investment, Tax Preparation
Verified

There is a two-year rule - if you already excluded the gain within two years - you may not exclude it again.

See IRS publication 523

https://www.irs.gov/pub/irs-pdf/p523.pdf

page 4

Eligibility Step 4—Look-Back
Determine whether you meet the look-back requirement.
If you didn’t exclude gain for selling a home on your tax returns for the previous two years (and you don’t intend to do so on any returns or amended returns for the past two years that aren’t yet filed), you meet the look-back requirement.

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Financial Professional: Lev, Tax Preparer replied 5 months ago

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