Home Sale Exclusion for a Surviving Spouse: the exclusion, by when the survivor sells
2026 law · reviewed September 6, 2026
| Situation | Exclusion | Authority |
|---|---|---|
| Joint return, both qualified | $500,000 | § 121(b)(2) |
| Survivor sells within 2 years of the death, not remarried | $500,000 | § 121(b)(4) |
| Survivor sells more than 2 years after | $250,000 | § 121(b)(1) |
| Survivor remarries and sells on a joint return with the new spouse | $500,000 if the new spouse also meets the use test | § 121(b)(2) |
| Use test not met; sale for work, health, or unforeseen circumstances | Months of use ÷ 24 × the amount above | § 121(c) |
| Use test not met, no such reason | None | § 121(a) |
| Deceased spouse's years in the home | Count as the survivor's | § 121(d)(2) |
Exclusion of gain on a principal residence for a surviving spouse, by time since the death and by the use test (§ 121).
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