The House, Remarriage, and Long-Term Decisions
What are the tax implications of selling the house after my spouse dies?
Short answer
California and federal capital gains exemptions allow a surviving spouse to exclude up to $500,000 of gain on the sale of a primary residence — but only if the sale occurs within 2 years of the death. After 2 years, the exclusion…
What this usually means
California and federal capital gains exemptions allow a surviving spouse to exclude up to $500,000 of gain on the sale of a primary residence — but only if the sale occurs within 2 years of the death. After 2 years, the exclusion drops to $250,000. The stepped-up basis at death also reduces the taxable gain. Consult a CPA before selling.
What to do next
- Start the PathAfter checklist for situation-aware first steps.
- Find California county phone numbers for coroner, vital records, and local offices.
- Open the First 72 Hours Call Log before making calls.
- Open the Documents to Find Checklist when you are ready for paperwork.