Quote:
Originally Posted by ER_Hopeful
it was her primary home, so I think she's mistaken about the 1031. In that case, I think she can claim the $250 exclusion. Is the exclusion per house or per life time? meaning if she used the $250k on a former primary house several years ago, can she still use the exclusion this time?
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The requirements for the 250K exclusion are:
- home was not acquired through a 1031 exchange
- she owned the home for 2 of the 5 years prior to the sale
- she lived in the home for 2 of the 5 years prior to the sale
- didn't use the exclusion during the 2 years prior to the sale
Requirements for a 500K exclusion:
- her spouse died during the 2 years prior to the sale
- she -or- her spouse meet the requirements above
An AARP Tax-Aide site could do this return and e-file it for her for free, but she has to be present in California to sign it, or you would have to have her power of attorney.