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Sales of a home $5000 exemption

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Level 1

The client sold her  home, her husband died in 2019. Capital gain 539K. Isn't  she suppost to get the $5000 exemption on her tax?

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Level 15
Level 15

Theres a 250k exclusion per person when you sell your principal residence if youve lived in it for 2 out of the last 5 years...is that what youre asking about?

Research IRC Section 121


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Level 15
Level 15

Theres a 250k exclusion per person when you sell your principal residence if youve lived in it for 2 out of the last 5 years...is that what youre asking about?

Research IRC Section 121


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post

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Level 10

No, I think the question asks about the $5K widow's exemption that was repealed in 1996. 

 

You can't get the message to all of the people, all of the time.  

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Level 15

1996 vs 2019 - that's pretty close.  Maybe the IRS will let it slide this year.   I wonder if they would be better off income averaging (as long as we are opening obsolete tax laws 😉 )

After a bazillion posts, I'm tired.
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Level 15
Level 15
I just had someone ask me about income averaging last week!

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 10

They wouldn't have to income average if they would just reinvest.  

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Level 1

Thank you !!

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Level 1

Hi Lisa,

Yes, that's what I was researching! I typed 5k instead of 500k. I got it now!

Thank you!

 

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Level 15

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

 


ex-AllStar
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