1099-S Filing Status, spouse part year resident
Hello. My wife and I sold a house last year in Minnesota for $460K and each received a separate 1099-S with capital gains of $230K at closing. I was the only name on the property deed but its considered marital property in Minnesota, so we were told both our names had to be on the sale.
I owned the property since 2021 and lived there as my primary residence while she moved in last year after we got married. So she was a part year resident of Minnesota and her primary residence was in Wisconsin before moving.
We were planning on filing separately because she was a part year resident of WI. I know i'm able to file for an exclusion for 250K but If she only lived in the home for part of the year can she not claim the exclusion of 250K? Are we able to filing jointly for the 500K exclusion? I know Minnesota is has to have to same federal and state filing status but i'm unsure with we can filing jointly with her being a part year resident.