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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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In regards XXXXX XXXXX gains tax here is my situation according

Resolved Question:

In regards XXXXX XXXXX gains tax here is my situation: according to the IRS, you may qualify to exclude up to $250,000.00 from your income all or part of any gain from the sale of your main home. I own a home in the Bronx, NY which I purchased during my previous marriage. The home is currently occupied by my former wife and children. She gained the right to live in the home during our divorce proceedings. I am going to sell the home soon. According to the IRS Publication #523, on selling your home, and under "use of home after divorce", you are considered to have used the property as your main home during any period when 1) You owned it and 2) your spouse or former spouse is allowed to live in the home under a divorce or separation instrument. In my case the home is under my name only but because we were married she will be entitled to one half of the selling price profit. I also have a home in Pennsylvania with my current wife. Can the home in the Bronx be considered my main home while having a primary residence in Pennsylvania? Do I have to pay Capital Gains Tax? My half of the profit will be $136,656.00 which is less than the maximum allowed.
Submitted: 8 years ago.
Category: Tax
Expert:  Ed Johnson replied 8 years ago.

Dear XXXXXu,


You can only have on primary residence.


however in the special case of divorced individuals, as you can still take the capital gains exclusion as you have outlined it.


YOu can not take another capital gains exlusion for two years after you sell the one your wife is occupying.


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