| The Mortgage Forgiveness Act of 2007 passed by Congress on December 18 provides that the $500,000 exclusion of gain from the sale of a principal residence will be available to a surviving spouse. This new law is effective for sales after December 31, 2007. The sale by the surviving spouse must occur within 2 years after the deceased spouse's death. Without this law change, a surviving spouse would have the $250,000 gain exclusion allowed to single taxpayers.
|
