Tax implications on a home sale

[Kevin Duke]

Here's a situation I've come across. How would you handle this?

- A married couple owns a home on Long Island, NY.  They haven't lived together for 20 years
- He is an out of state resident residing in Massachusetts, she has lived in the home for 32 years

- The selling price of the home is $385,000
- The current mortage payoff number is $123,000
- His payout of the sale is $30,000
- Her payout of the sale is (385,000 - 123,000 - 30,000 - closing costs)
- She qualifies for the 250,000 individual capital gains exemption as her primary residence is the property being sold.
- He is an out of state resident residing in Massachusetts
- He wishes to remove himself from the deed and transfer his interest in the property to his wife

He wishes to avoid paying any taxes on his portion of the sale

Any suggestions?

Thanks in advance,

Kevin