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Sale of Jointly Owned Home

The tax rules for the sale of a jointly owned home are clear. If you have questions about capital gains and the exclusion of gain elective in regard to the sale of a residence, see below.

When a jointly owned home which is the principal residence of two (or more) single owners is sold, each owner applies the rules of Sec. 121 separately. Thus, each is entitled to exclusion of gain privileges under Sec. 121. A former exclusion of gain election by one owner does not affect the other’s right to elect the exclusion.

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