Capital gains
My husband and I purchased a home (primary) in 1994. My husband passed in 2022. When I sell my house do I get the 500000 marital exemption or just 250000 because he is no longer alive? Thank you
Terry Says
Well, you need an estate planning attorney now. The value of HIS half of the house, is the value on his date of death. So his half gets the “step-up” valuation. You will get a $250,000 exclusion on any gains on his half since his date of death, plus all of your gains since purchase (minus any home improvements made in the interim).
It would be a good idea now to go over all the home improvements and document those amounts, if you sell.
Oh, and one more thing — under current law if you NEVER sell, but die owning the home, then your heirs will get a complete “step-up” to the value of the home on the date of your death. If they sell it shortly after your death, there will never be a capital gains tax on it!
