Video FAQ: Selling the House After a Spouse Passes Away

In this video FAQ, we answer the question, “how long do I have to sell my house after my spouse passes away in order to avoid capital gains?

Typically, this won't affect a lot of people, because most states have community property, where you'll get a full step up in cost basis, or even a partial step up in cost basis. However, when it does affect you, you actually have two years after your spouse passes away to avoid capital gains of up to $500,000 on the sale of your primary residence. After those two years, it drops down to $250,000.

Find out more information about this by consulting your tax advisor or visiting https://www.irs.gov/publications/p523.