Special rules for joint returns
In the case of a husband and wife who make a joint return for the taxable year of the sale or exchange of the property—
(A) $500,000 Limitation for certain joint returns
(A)$500,000 Limitation for certain joint returns#
Paragraph (1) shall be applied by substituting “$500,000” for “$250,000” if—
(i) either spouse meets the ownership requirements of subsection (a) with respect to such property;
(ii) both spouses meet the use requirements of subsection (a) with respect to such property; and
(iii) neither spouse is ineligible for the benefits of subsection (a) with respect to such property by reason of paragraph (3).
(A)(i)#
either spouse meets the ownership requirements of subsection (a) with respect to such property;
(A)(ii)#
both spouses meet the use requirements of subsection (a) with respect to such property; and
(A)(iii)#
neither spouse is ineligible for the benefits of subsection (a) with respect to such property by reason of paragraph (3).
(B)Other joint returns#
If such spouses do not meet the requirements of subparagraph (A), the limitation under paragraph (1) shall be the sum of the limitations under paragraph (1) to which each spouse would be entitled if such spouses had not been married. For purposes of the preceding sentence, each spouse shall be treated as owning the property during the period that either spouse owned the property.