MGC94
Level 7
03-28-2022
08:39 PM
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Client owned an income producing farm. Filed a schedule F. Their farm is also their main home address. They sold for $700,000. MFJ. Sold their main home over 20 years and moved. How do I report this sale?
Home was in spouse's name, not in taxpayer's name. They file MFJ, but the house is only in the spouse's name. Do they get $500,000 exclusion, or only $250,000 because it's in her name?
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Norman2001
Level 7
03-29-2022
07:53 AM
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Either spouse can meet the ownership requirement to get the $500k exclusion
§121(b)(2)(A)(i)
dkh
Level 15
03-29-2022
10:57 AM
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Don't forget to allocate part of the sale to the farm buildings and land. Depreciated buildings do not fall under the principal residence exclusion
