Home Sale Taxes

I’m Miriam Neff, and I’m Valerie Neff Hogan, with Wise Women Managing Money.

M While few like to talk of death, this is a reality in marriages.  Here’s an important fact.  Surviving spouses may exclude from income tax $500,000.00 of home sales profit if they sell their home within two years of their spouse’s death, as long as they owned and lived in the home 2 of the 5 years before death. 

V That sales profit number is based on the value of the home at the time of death.  It’s important to have a home appraisal at that time.  That is the basis point for the home sales profit.

M This information helps preserve your wealth so that you can determine how to spend, invest, or give those resources.