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Updated almost 4 years ago on . Most recent reply

User Stats

57
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17
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Justin Summers
17
Votes |
57
Posts

$500k Primary home capital gains exclusion - Odd Situation.

Justin Summers
Posted

So, my question.

I have a house (Property A) that I lived in for 10 years but moved out of it and into another property 2 years ago.

(Passed The lived in 2 of the past 5 years test)

Property A has 3 bedrooms and a guest house.. I rented out the bedrooms in the house to individual renters and also rented out the guest house to a tenant we will call Jane Doe. She has been living there for 2 years and 3 months. (Also, Passed The lived in 2 of the past 5 years test)

Well, I'm planning on selling the house (about $600k capital gains) and also Jane and I fell in love and are considering getting married.

So, my questions. 

1. Jane and I have both lived in the house for 2 of the past 5 years.  Even though her 2 years were living there as a tenant. 

If we marry do we qualify for the $500k exclusion?

2. Is there a time period before selling that we have to be married? or if we get married a couple of months before selling does that work?

3. Do I need to put Jane on the deed before selling to get the exclusion? I think I read somewhere that it's not required but just want to be sure.

4. Jane is not currently a US citizen and hasn't ever filed taxes here in the US. ( Overstayed her visa from the UK for the last 4 years) Any issue there?

Anything else to worry about that I"m not anticipating? 

Thanks for any help

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