Residence sale exclusion year-of-death rule.

• Author: Laffie, Lesli S.
• Position: AICPA ACTIVITIES

In December 2005, the AICPA sent a letter to Sen. Charles E. Grassley (R-IA), Chair of the Senate Finance Committee, and Rep. William M. Thomas (R-CA), Chair of the House Ways and Means Committee, to correct an inequity in the tax law without increasing complexity and with little revenue effect. The proposal amends the current Sec. 121 exclusion for a spouse dying within a tax year, to offer a 12-month period from the date of death of a spouse, during which the surviving spouse can use the $500,000 gain...