Q: My father passed away in January. He and my mother owned a principal residence, which my mother may want to sell at some point in the near future.
Is my mother still entitled to the $500,000 home sale exemption on their principal residence?
A: Yes. A new law permits her to take his exemption if she sells at any time over the next 2 years. So, she’ll be able to shelter up to $500,000 in profits as long as she has lived in the house for two of the last 5 years.
For more details, please speak to an estate attorney or real estate attorney.