21 Jun We’re getting a divorce. What happens with tax on our home sale?

Q. My wife and I are selling our home and we are going through a divorce. The deed to the house is only in my wife’s name. Could we still claim the $500,000 capital gains allowance if we sell even though only her name is on the deed? Also would we need to file the tax return jointly?
— Selling soon

A. There’s a lot of missing information here.

You didn’t say how long you have both lived in the home. You also didn’t indicate whether you have been filing your tax returns together still.

“The deciding factor is the filing status, not how it’s deeded,” said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston. “The exclusion is $250,000 per person if the property was used as a personal residence for two of the past five years.”

You should meet with a professional who can help you determine your options based on the circumstances of your personal situation.

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This story was originally published on June 21, 2023.

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