Propery Transaction &Partnership

Question 1

Sale of principle residence

Answer 1

Any taxpayer who owned and uses their home as principal residence for at least 2 of the last 5years before the sale can exclude gain $250000 for single or $500000 for mfj

Can use repeatedly for every 2yrs

If T maintain his residence less than 2yrs, the amount of exclusion is prorated if the sale is due to change employment or unforeseen circumstances

Gain is allocated to non-qualified use