Hi all, my parents have 2 primary residences, and they are looking to sell one of them. I was curious if anyone had insights on my scenario:
Parents are living apart, yet still file federal taxes as 'married', but file individual state returns. They are looking at selling their house in Michigan where my mom has resided the last 2+ years. Does this mean they would still get the full $500k tax break? Or would they only get the 250k for single person since they have been living separately?
I'm not a CPA but based on your post as long as your mom is the owner of the house in Michigan she should qualify for the $500k capital gains exemption. But @Drew Sygit brings up a good point regarding filing jointly or separately. If you want professional tax advice I can connect you with a great CPA.