{"id":7391,"date":"2023-10-16T07:49:56","date_gmt":"2023-10-16T07:49:56","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=7391"},"modified":"2023-10-16T07:50:08","modified_gmt":"2023-10-16T07:50:08","slug":"section-121-exclusion","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/section-121-exclusion\/","title":{"rendered":"How to Maximize 121 Exclusion on Gains from House Sales?"},"content":{"rendered":"\n
\"121 <\/picture><\/figure>\n\n\n\n

IRC 121 exclusion<\/strong> provides that when you sell your “principal house”, you may be able to exclude a portion or all of the gains from your income, thanks to specific provisions in the U.S. tax code. Section 121 of the Internal Revenue Code provides a specific exclusion for capital gains<\/a> realized on the sale of a principal residence. Tax law distinguishes types of residence for income exclusion purposes, please read this.\u00a0<\/p>\n\n\n\n

Who is eligible for 121 Exclusion?<\/h3>\n\n\n\n

To qualify for the Section 121 exclusion, the following three fundamental conditions must be fulfilled.<\/p>\n\n\n\n

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  1. The ownership of the sold home must be for at least two years during the five years ending on the date of the sale.<\/li>\n\n\n\n
  2. You are living in your principal residence for at least two out of the five years preceding the sale. These two years of residency do not need to be consecutive.<\/li>\n\n\n\n
  3. You have not claimed any home sale exclusion within the two years immediately preceding the sale. <\/li>\n<\/ol>\n\n\n\n
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    Table of Contents<\/p>\n