Revenue Code Section 121

Section 121 of the internal revenue code of 1986 as amended by this section shall be applied without regard to subsection c 2 b thereof in the case of any sale or exchange of property during the 2 year period beginning on the date of the enactment of this act if the taxpayer held such property on the date of the enactment of this act and fails to meet the ownership and use requirements of subsection a thereof with respect to such property.

Revenue code section 121. For married couples you can exclude the first 500 000 of gain. Single taxpayers are entitled to a 250 000 exclusion and married taxpayers filing jointly are entitled to a 500 000 exclusion. Internal revenue code 121. Technically there is a tax but the government also offers a limited exclusion under section 121 of the internal revenue code.

Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. Homeowners who have resided in their residence for at least two of the last five years may be eligible for the principal residence exclusion allowed under section 121 of the internal revenue code. Exclusion of gain from sale of principal residence on westlaw. Under internal revenue code section 121 a married couple is permitted to exclude 500 000 of gain and a single taxpayer may exclude 250 000.

Among the tax benefits available to homeowners one of the most useful is the principal residence exclusion provided by internal revenue code irc section 121 which allows homeowners to exclude a certain portion of their capital gains when they sell their primary residence. Section 121 a generally provides with certain limitations and exceptions that gross income does not include gain from the sale or exchange of property if during the 5 year period ending on the date of the sale or exchange the taxpayer has owned and. For individuals who sell their primary residence you can exclude the first 250 000 of gain. After that it is subject to a capital gains tax.

Section 121 of the internal revenue code of 1986 as amended by this section shall be applied without regard to subsection c 2 b thereof in the case of any sale or exchange of property during the 2 year period beginning on the date of the enactment of this act if the taxpayer held such property on the date of the enactment of this act and fails to meet the ownership and use requirements of subsection a thereof with respect to such property. For more detailed codes research information including annotations and citations please visit westlaw.