Wife Doesn’t Own

Expert, localized Los Angeles answers provided by Heather Roy

Wife Doesn’t Own
	Dear Edith: I purchased my home over 10 years ago and am now considering to sell it. Because of the market conditions I most likely will end up with a significant gain (above $250K). I understand that for a primary home I would be eligible for a $250K exemption (individual) and $500K (married). The "problem" is my wife is not listed on the deed. I bought the house before I got married and we never got around to having the deed changed to reflect both names. Will this situation affect us qualifying for the higher (married) exemption of $500K?

	The IRS says that if one spouse meets the ownership and occupancy requirements, it’s okay if the other one meets only the occupancy test. If your wife has lived in the house at least two of the five years before you sell, your sale will qualify for the full homesellers capital gains exclusion.
	Edith Originally published on November 29, 2005

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