AARP REMINDS US OLDER FOLKS.

"You now have up to two years following a spouse's death to sell your jointly owned home and keep up to $500,000 in profits tax-free, thanks to a provision of the Mortgage Forgiveness Debt Relief Act signed into law last December.  The change should allow recently widowed homeowners more time to grieve and better plan their future, instead of rushing a home sale to avoid paying more taxes. 

Previously, a home had to be sold the same year as a spouse's death to qualify for the $500,000 exclusion; widowed homeowners who waited two years were only eligible for up to $250,000.  Any longer they wouldn't be eligible at all."   This is an important piece of information for someone who has lost their spouse.   You might want to keep a copy of this blog in a safe place,  just in case you or a family member loses their spouse, as this is a great tax break for widowed homeowners.