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 exclusi...