Exceptions to sale

[Unregistered]

Client sold Personal Residence in 2005.

Client was in personal home for only one year (NOT TWO) and also he Owned it for 1 year (NOT FIVE). So he failed both tests. There for no exclusion. But exceptions may apply. Exceptions that apply in this case is job related move.

I looked at TTB 6-18. "Taxpayer who do not meet the ownership and use conditions may qualify for a reduced excusion."

"Ownership" and "use tests" require five year ending on the sale date (TTB 6-17)

The question is he did not have five year ending on the sale date (TTB 6-17).

Can I still apply reduced excusion?

Thanks!

[Armando Beaujolais]

Client sold Personal Residence in 2005.

Client was in personal home for only one year (NOT TWO) and also he Owned it for 1 year (NOT FIVE). So he failed both tests. There for no exclusion. But exceptions may apply. Exceptions that apply in this case is job related move.

I looked at TTB 6-18. "Taxpayer who do not meet the ownership and use conditions may qualify for a reduced excusion."

"Ownership" and "use tests" require five year ending on the sale date (TTB 6-17)

The question is he did not have five year ending on the sale date (TTB 6-17).

Can I still apply reduced excusion?

Thanks!

The ownership and use tests don't require ownership and use for five years. They require ownership and use for two years. The five year requirement just means that anything more than five years ago can't count toward the two-year test.

On 6-18 of TTB, "Taxpayers who do not meet the two-year ownership and use tests...can claim a reduced exclusion on the sale of a home if the primary reason for the sale is due to...A change in place of employment..."

If someone owned and lived in a primary residence for one year and sold the home for a qualified reason such as change of place of employment, they will be eligible for a reduced exclusion.

[Unregistered]

The ownership and use tests don't require ownership and use for five years. They require ownership and use for two years. The five year requirement just means that anything more than five years ago can't count toward the two-year test.

On 6-18 of TTB, "Taxpayers who do not meet the two-year ownership and use tests...can claim a reduced exclusion on the sale of a home if the primary reason for the sale is due to...A change in place of employment..."

If someone owned and lived in a primary residence for one year and sold the home for a qualified reason such as change of place of employment, they will be eligible for a reduced exclusion.

Thank you.

[Matt Sova]

Don't forget

Of course you have to apply the same rules that apply to deducting moving expenses.