Sale of principal residence due to unforeseen circumstances.

• Author: Josephs, Stuart R.
• Position: IRS News - Tax law - Brief Article

A partial exclusion of gain on the sale of a principal residence may be available for taxpayers who fail the two-out-of-five year ownership and use rule or the one-sale-every-two year rule because of a "forced" sale caused by a change in place of employment, health or, to the extent provided in regulations, unforeseen circumstances.

Regulations proposed in 2000 requested comments regarding what circumstances should qualify as unforeseen. Notice 2002-60 (IRB 2002-36, 9/9/02) states that "Comments suggested that...