Agent

Birth of twins gives couple real estate tax break

Event called an 'unforeseen circumstance'

The real estate event of the summer
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DEAR BOB: My wife and I bought our first home in March 2004. We sold it in January 2005 due to the birth of our wonderful twins. When we sold it, we used our profit to buy a larger home with double the square footage and almost double the price. Can we apply for an exception on the sale of our home pertaining to Internal Revenue Code 121 due to the multiple births although we don't meet the 24-out-of-60-month occupancy test? --Kyle G. DEAR KYLE: Congratulations to you and your wife on the birth of twins. Uncle Sam is so thrilled he will reward you with a partial IRC 121 principal residence sale tax exemption based on the number of months of ownership and occupancy. Purchase Bob Bruss reports online. The Internal Revenue Service calls your situation an officially approved "unforeseen circumstance," entitling you to a partial $500,000 home-sale tax exemption. Because you occupied your principal residence for 10 months, you qualify for an exemption of 10/24ths of the $500,000 exemption a...