Discussion:Primary residence exclusion in divorce
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Primary residence exclusion in divorce
| 4 December 2005 | |
| Husband and wife divorce and continue to hold property together that wife continues to live. Six years later ex wife and ex husband sell property. Does ex husband still get the exemtion with the incidence to divorce rule? Thanks | |
| 4 December 2005 | |
| never mind.. found answer in publication:
Use of home after divorce. You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. | |
| 12 October 2006 | |
| "found answer in publication"
Which publication, page #, link? I have a similar situation, spouse out of house 4 years and doesn't qualify for 2 of 5 year rule as this spouse's principal residence. "You are considered to have used property as your main home during any period when: (1)You owned it, and (2)Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home." If I understand the above,you are stating that if the spouse or ex-spouse is allowed to live there by separation agreement or divorce decree, then this house will qualify for the 2 or 5 year rule even though they may have another new house that also qualifies as a principal residence. I didn't think you could have 2 principal residences at the same time, but this would be an exception to that? I'll go look for the pub at the IRS.gov site, but if anyone can confirm or help on this issue, I would appreciate it very much! Sheldon | |
| 12 October 2006 | |
| See Sec. 121(d)(3)(B). Yes, this is one instance in which the taxpayer is allowed to have 2 principal residences at the same time. | |
| 13 October 2006 | |
| Thanks for the quick reply! I'll take a look. I also see help in Treasury Regs Sec 1.121-4 Special rules at (b)(2). http://www.taxalmanac.org/index.php/Treasury_Regulations%2C_Subchapter_A%2C_Sec._1.121-4 for link. | |
