I've done my own research as much as I can on this topic, but hoping someone with more expertise in real estate transaction tax can help.

My wife and I got married recently and are looking to sell the houses we lived in separately (before we were married). Each sale would qualify for the home sale gain exclusion individually. Each meets primary residence criteria. The gain on each sale will be under $250k. Neither home was used for rental or business purposes.

What I'm not 100% sure about is whether the IRS will let a couple filing jointly to take the home sale gain exclusion on two houses in the same year, despite each house meeting the criteria.

This article suggests both houses qualify (section 2: Married Couples Who File Jointly With Two Homes).

I've found a few other articles that also suggest the exclusion would apply to both sales. But when I read IRS Publication 523, I don't see our specific situation covered.

Any help/advice would be appreciated. Thanks!

General consensus if you each would be eligible for $250k. There is not IRS requirement that it is one per return assuming the eligibility is met. If you didn't get a 1099 from the title company which you shouldn't have, you don't even have to report it on your return assuming you meet the eligibility.

Hupernikao said:

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General consensus if you each would be eligible for $250k. There is not IRS requirement that it is one per return assuming the eligibility is met. If you didn't get a 1099 from the title company which you shouldn't have, you don't even have to report it on your return assuming you meet the eligibility.

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Appreciate the response. That lines up pretty well with my perception.

Get an accountant, its easy cheap peace of mind

Did title companies each send you a 1099 for the sales? If not, they won't be looking for the sale(s)on your return

Wrong emoji. Disregard.

combat wombat said:

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Did title companies each send you a 1099 for the sales? If not, they won't be looking for the sale(s)on your return

Wrong emoji. Disregard.

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It's actually a potential 2023 issue that I'm trying to get out ahead of (not 2022) and make sure I've got my bases covered. I asked a CPA in my family and he looked into it and said the same as Hupernikao's post above.

With regard to your question, I talked to the title company a few days and they said they unfortunately have to issue 1099s for both sales since my wife and I both have to sign for each sale (even though each house is only listed under one of our names... kinda lame). Anyway, that doesn't mean we have a tax liability though. Just means we need to have our story/evidence straight if the IRS asks.

Thanks everyone for the help.