Section 15.36 Nonrecognition of Gain on Sale of Principal Residence

LibraryFamily Law Deskbook and 2014 Supp

C. (§15.36) Nonrecognition of Gain on Sale of Principal Residence

Homeowners may exclude up to $500,000 in gain from the sale of a principal residence—$250,000 for single taxpayers—every two years. I.R.C. § 121. This provision may be exercised by the taxpayer regardless of age. See I.R.C. § 121(b)(1) and (2). This provision replaced a former provision under I.R.C. § 121, which provided taxpayers age 55 and over with a one-time exclusion of up to $125,000 in taxable gain on the sale of the principal...

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