Agent

Feds deny tax savings on multiple home sales

Rule puts limit on how often exemption can be used

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DEAR BOB: Regarding the Internal Revenue Code 121 principal residence sale tax exemption up to $250,000 (up to $500,000 for a married couple), we own two houses for which we meet the 24-out-of-last-60-month ownership and occupancy requirement on both. One house is now listed for sale. When it sells, we would like to move into the other house and sell it within the next several months. If we sell one house in 2006 and the other house in 2007, can we claim the IRC 121 exemptions on both houses? --Bonnie H. DEAR BONNIE: No. But it sounds like you understand IRC 121 quite well. To qualify for the principal residence sale tax exemption up to $250,000 (up to $500,000 for a married couple filing a joint tax return) you must own and occupy the home at least 24 of the last 60 months before its sale. Purchase Bob Bruss reports online. However, this tax exemption can only be used once every 24 months. When you sell one qualified house in 2006, then you can't use the IRC 121 exemption again on ...