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Updated over 3 years ago, 04/03/2021
$500k Primary home capital gains exclusion - Odd Situation.
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