How To Handle Capital Gains Tax on a Home When You Lose Your Spouse
Briefly

Navigating decisions about a shared home after losing a spouse involves understanding capital gains taxes. These taxes can heavily affect widowed homeowners, with the exclusion amount dropping from $500,000 to $250,000 after a spouse's death. Timing plays a critical role; selling within two years enables the full exclusion and can lead to substantial tax savings. Renovations made during marriage may enhance the home's cost basis, lowering taxable gains. Various strategies exist to reduce tax burdens, and current regulations should inform end-of-life decisions.
Capital gains taxes can be a significant financial concern for widowed homeowners, especially when the exclusion amount shifts from $500,000 to $250,000 after a spouse's death.
Timing is crucial; selling within two years of a spouse's passing allows for the full $500,000 exclusion, potentially saving thousands in taxes.
Read at SFGATE
[
|
]