[Almost Done]

Does the gain have to be used to purchase another principal residence in order for it to be excluded.

Example: Joe, a single taxpayer, sells his house which has been his principal residence for the last three years, for a gain of $100,000. Does he have to use the proceeds to purchase another principal residence for the gain to be excluded?

I thought I read this somewhere but now I’m seeing otherwise.

Thoughts?

BEC: Passed
REG: Passed
FAR: Passed
AUD: Passed

[Anonymous]

No, it does not. I believe that used to be the case, but is not anymore.

[Givemesleep]

If you lived in the home as your principal residence for 2 out the last 5 years you can exclude $250K of gain for singel and $500K for married filing joint. Losses on the sale of a principal residence are not deductible.

Reg 11/15/2011 - 80
Aud 02/28/2012 - 81
Bec 05/31/2012 - 78
Far 08/31/2012 - 83 Do you believe in Miracles, YES !!!

CPA License received 10/2012 !!
CFE License received 04/2013 !!
EA License received

Givemesleep

[Author]

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