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IRS Rules on Exclusion for Sale of Home Revised
- April 7th, 2004
The IRS has relaxed its criteria somewhat for when homeowners can exclude capital gains on the sale of their home.
You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. However, this exclusion is only available if you owned the home and used it as your main home for at least two years.
Under a new IRS revisions to the rules, if you owned and lived in the property as your main home for less than two years, you still can claim an exclusion in some cases. Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. The maximum amount you can exclude will be reduced.
"Unforeseen circumstances" can include: inability to pay the mortgage or basic living expenses without the sale, due to a death, divorce or change in employment status.
Tax filings from 2000 through 2003 may be eligible to be amended to take a partial capital gains exemption.
See IRS Publication 523, Selling Your Home, for more information.
Local Elder Law Attorneys in Ashburn, VA
Hale Ball Carlson Baumgartner Murphy PLC
Attorney Samantha Simmons Fredieu is an associate at Hale Ball. Ms. Fredieu graduated magna cum laude from Vermont Law School where she was the symposium editor on the Vermont Law Review, a production editor on the Vermont Journal of Environmental Law, and a member of the Moot Court Advisory Board. She has clerked for...
Law Offices of John L. Laster
John Laster is a lawyer licensed to practice in Virginia, Maryland and the District of Columbia. He limits his practice to wealth transfer planning, trusts, wills, powers of attorney, health care decision-making issues, estate administration and related tax, elder law and disability concerns. Listed in The Best Lawyers...
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...