Q: My husband passed away 1 ½ years ago. Can I still claim the joint home sale exclusion if I roll over funds into another place?
A: Yes. The full $500,000 home sale exclusion (which is reduced to $250,000 for single filers) is still available for up to two years after the death of a spouse. But both spouses must meet the requirements of use and ownership of the home as a principal residence for at least two out of the five previous years. Also, a surviving spouse can’t remarry before the sale.
Tip: You don’t have to “roll over” funds into another home. The rollover requirement was eliminated years ago.
