“Eligibility Step 2—Ownership
Determine whether you meet the ownership requirement.
If you owned the home for at least 24 months (2 years) out of the last 5 years leading up to the date of sale (date of the closing), you meet the ownership requirement. For a married couple filing jointly, only one spouse has to meet the ownership requirement.”
This might help for a start…….but read more to be sure it makes you eligible for the 500K. I think the Worksheet I should lead you to the correct answer …….scroll & search.
Worksheet 1. Find Your Exclusion Limit
Use this worksheet only if no automatic disqualifications apply, and take all exceptions into account.
A) Determine if you are eligible for the maximum exclusion limit.
Status: Married filing jointly
:You are eligible for the maximum exclusion if…Both spouses meet the residence and look-back requirements and one or both spouses meet the ownership requirement.
Maximum exclusion $500,000
If you’re not eligible for the maximum exclusion limit, then you should…Determine if either spouse is eligible for the full limit as a single person. If not, determine if either spouse is eligible for a partial exclusion.