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by CareyBot

DEAR BOB: I am confused about your recent answer to a home seller who wants to add her mother to the title. You said the mother would be eligible for an Internal Revenue Code 121 principal residence sale tax exemption up to $250,000 after only 24 months of ownership and occupancy. How can she qualify with less than 60 months of ownership? – Donald M. DEAR DONALD: Internal Revenue Code 121 is very generous to principal residence sellers. After as little as 24 months of both ownership and occupancy, a home seller can qualify for up to $250,000 tax-free capital gains. That is the situation for the letter writer who plans to add her mother, who will live in the house for 24 months, to the home's title. Both daughter and mother then qualify for $250,000 individual exemptions. Purchase Bob...