"Dax" <davenuc[at]excite.com> wrote

- quote -

Nope. Since she doesn't own the house, she can't take any
exclusion.

Getting married ~might~ solve it, but having her on the
title (about two years ago) would.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Dax wrote:

- quote -

You are correct about your current home. You only would
qualify for a $250K exclusion. If you both own the new home
and both live in it as your main home for the required two
year periods, you both could qualify for the $250K exclusion
when it is sold.

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"Dax" <davenuc[at]excite.com> wrote:

- quote -

No. Were you married, both you and your spouse would be
entitled to $250K each, assuming both of you had lived there
2 of the 5 years prior to sale.

- quote -

No comment, just a lament about the death of romance.

- quote -

Since you're not married, your SO would have to meet both
the ownership and use tests to qualify for the exclusion.
That means that you'd have to own the property for another 2
years after the title transfer. (You could go ahead and
move, renting the property until the 2 years was up.)

In addition, you'd have a gift tax filing requirement for
the transfer. You probably woudn't owe any cash, but would
use some of your unified credit.

This is one of those cases in which living in sin is not for
fun AND profit.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I am selling my house and buying a new house with my
"Significant Other" who is not on title to my current house,
but will be on the new house. We have lived together in our
current house for 8 years which I have owned for over 20
years. When I sell the current house I stand to gain around
500K in "profit" (although the new house costs twice as much
and the new taxes will be more than my current house
payment). Everything I've read indicates I can get an
exemption for 250K of the profit, but the full 500k if I
were married. At this time I don't feel like getting
married just for financial reasons. Is there a reason why
we couldn't each claim the 250k exemption if we both were on
the title since we've both liver there together for over 5
years?

thanks, dave

Moderator:
Since you are living in sin, it would be a 180ø reversal
for me to suggest getting married.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It may not be relied upon for the purpose of avoiding > << penalties that may be imposed on the taxpayer or the > << tax preparer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >