A.G. Kalman wrote:
- quote -

I should have added that the sale of the first home allows
for full exclusion of gain except that part of any gain
attributable to depreciation allowed or allowable. You did
mention that you are renting your former home.

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A.G. Kalman <glendale202-mtm10[at]yahoo.com> wrote:
- quote -

But the once-every-two-years rule is exactly why he is
trying to quit claim those houses, so each spouse can
separately claim the 250,000 (or prorated amount) without
regard to what the other spouse does about the other house.

- quote -

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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cfoushee[at]gmail.com wrote:

- quote -

Quit claiming the property has no impact on whether you can
exclude gain (Sec. 121 exclusion) on the sale of your main
home. The rules look at who owned the property and who used
the property during the five year look back period.

It appears as though you both are joint owners of both
properties and that you both have owned your prior main home
for three years and you both used it as your main home for
two years when one looks back five years. This means that
your former main home meets the requirement for full
exclusion of gain.

Your current main home fails the test for full exclusion on 3
counts: ownership, use as main home and elapsed time from the
using the Sec. 121 exclusion. However, it might be eligible
for a partial exclusion assuming your job move meets the
minimum distance test. The partial exclusion test is three
pronged. It looks at the period of ownership, the period of
use and the period of time that has elapsed since you used
your last Sec. 121 exclusion. You must use the smaller of the
three prongs. So, if you intend to sell both homes, you should
sell the former home first and take the full exclusion. Then
sell the current main home and take a partial exclusion using
the number of days that elapse between the sale of the old home
and the sale of the new home to compute the partial exclusion.
The partial exclusion available is days elapsed between the
two sales divided by 730 times $250K times two. In other
words, as this is a joint return and you both qualify, you
apply the ratio to your $250K and also to your wife's $250K.

Example: Let's say that 73 days elapse between sales. 73/730
= 10%. Your combined maximum exclusion would be $50K (10% of
$250K and 10% of $250K) on the current home.

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My wife and I have 2 houses are about to move out of state
so I can take a different job. We have been living in our
new home for 1 year now, and previously lived in our old
home for 2 years before renting it one year ago.

Questions:
1. Can I put our current home in my name via a quit claim
deed and because I am moving for a job related issue avoid
paying all capital gains on it? (Because I was only there
for a year do I have to claim a pro rated amount of tax?)

2. Can I put our old home in my wife's name via quit claim
deed and sell it and also avoid having to pay the capital
gains on it because she did own and occupy the home for 2
years.

Note: The capital gains on each home is less than 250k.

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