Atmosphere Productions: Home Sales by Newlyweds

June is traditionally the most popular month for weddings, so we wanted to bring some information passed onto us by our CPA Gitlin-Campise LLC's Tax and Business Alert.

One of the most common large-scale financial transactions most of us encounter is the sale of our home, and newlyweds have a unique opportunity to exclude home sale gains.  Taxpayers are allowed to exclude from federal taxation up to $250,000 ($500,000 if married filing jointly) of gain realized on the sale or exchange of a principal personal residence.  Gain is computed based on the selling price less the adjusted cost basis of the residence plus any selling expenses.

Married taxpayers filing a joint return for the year of sale may exclude up to $500,000 of gain IF (a) either spouse owned the home at least two of the five years prior to the sale, (b) both spouses used the home as a principal residence for at least two of the five years prior to the sale, and (c) neither spouse is ineligible for the exclusion because he or she had sold another home within the two-year period ending on the sale date to which the exclusion applied.

If only one spouse meets the qualifications of items (b) and (c), that spouse may still be entitled to exclude up to $250,000 of gain on the joint return.  When only one individual entering a marriage owns a principal residence, close attention to the calendar and to usage by the non-owning spouse can make the difference between a completely tax-free and partially taxed gain.

If both parties entering a marriage intend to move into a new (to them) principal residence after their marriage, each can sell his or her former residence and exclude up to $250,000 of gain if they each meet the three qualifications.  The provision limiting the exclusion to only one sale every two years by the taxpayer does not prevent a husband and wife from filing a joint return and each excluding up to $250,000 of gain from the sale or exchange of each spouse's principal residence owned at the time of marriage.  However, this is only the case when each spouse would be permitted to exclude up to $250,000 of gain if they filed separate returns.

Home sale gain exclusion qualifications can be mystifying, so before completing any significant transactions based on the above information, please contact your Certified Public Accountant to discuss the technical and tax-savings aspects that are specific to your situation.

This information should only be used as reference and should not be construed as legal or tax advice.

Atmosphere Productions LLC is a CT Wedding DJ, providing professional mobile entertainment service, Music, Reception Entertainment Directors, MC and DJ's primarily for Weddings in the Greater Hartford area but throughout Connecticut, Massachusetts, New York, Rhode Island and in the New England area.

Specializing in wedding disc jockey entertainment, radio & club dj's, corporate and business events, photo booth rentals, ceremony musicians, strolling violinist, guitarist, cocktail & chamber musicians, custom lighting, custom song editing and voice-over services.

For further information visit our website at
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DJ Sam
Sylvester Samuels
Reception Entertainment Director
As featured in Eric and Amanda's winning wedding on the season finale of TLC's TV

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Weddings, Wedding Venues
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Atmosphere Productions LLC
Professional Disc Jockey Entertainment
PO Box 330303
West Hartford, CT 06133-0303
Celebrating over 30 Years in the Wedding/DJ/Entertainment Music Business
Member of The DJ Network
Member of The West Hartford, CT Chamber of Commerce
DJ Times ~ Mobile DJ Of The Month
Former WKND Air-Personality


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