If you’re a surviving spouse, you can qualify for the $500,000 joint-filer home-sale gain exclusion if you file a joint return for the year of your spouse’s death and sell your home in that year. But this rule gives you precious little time to make plans during an emotionally charged time.
Strategy: Put the old homestead up for sale. Thanks to a tax law enacted late in 2007, a surviving spouse can claim the $500,000 home-sale exclusion for sales occurring within two years of the spouse’s death, even though filing a joint return is not allowed.
Example: If your spouse passed away on Jan. 1, 2007, you have until Dec. 31, 2008, to complete a sale qualifying for the home-sale exclusion. Under prior law, the exclusion would not have been available for a 2008 sale.
Tip: Your basis in the home is stepped up to reflect your deceased spouse’s half share.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/6937/year-end-08-personal-tax-strategy-salvage-a-home-sale-exclusion "