- quote -

As I read 121 it's $250,000 per taxpayer ($500,000 on a
joint return). There's nothing about a per-property limit.

Phil Marti
Topeka, KS

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ddl[at]danlan.*com (Dan Lanciani) wrote:

- quote -

Here is how I believe it would work. Assume that there were
multiple owners who all lived there as their primary
residence for at least two out of the last five years. Say
they each had some percentage of ownership. They would each
subtract their own cost basis from the net sales price,
based upon each ones percentage ownership. From their gain
they each would exempt $250K from the taxable gain. That
assumes that it's been at least two years since the last
time they did this on an individual basis.

BC

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"Dan Lanciani" <ddl[at]danlan.*com> wrote:

- quote -

That's an interesting question. I know that if there are
two non-married owners, each can claim up to $250,000 (if
he/she meets the 2/5 rule). If the percentage of ownership
is 75%-25%, for example, I would think each owner would
determine his/her share of gain and exclude up to $250,000.
This scenario could easily mean that the total allowed
exclusion would be less than $500,000. But what happens if
there are three or more owners? Is the maximum for the
HOUSE $500,000, apportioned among the owners? Or could each
owner claim $250,000 even if the total exceeds $500,000?

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- quote -

For full exclusion each owner must meet both tests. There
are some special rules for married couples.

See IRS Publication 523.

Phil Marti
Topeka, KS

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Dan Lanciani wrote:

- quote -

They each, independently, calculate whether they meet the
2/5 test for ownership and residence as main home for their
share.

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How does the gain exclusion work when you have multiple (not
husband and wife) owners on the title? Do they all have to
meet the 2/5 year rule or does each pro-rate based on their
share of ownership or what?

Dan Lanciani
ddl[at]danlan.*com

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