Does someone remember the rules of excluding gain from the sale of a personal residence in 1994? I know a new residence purchase price equal to or exceeding the old residence sale price was necessary. My specific interest is if two individually owned residences were sold, could they both be excluded if the combined sale price fit the requirements. Also was there a required holding period for the residences sold?
Why would I need this information? A recent court settlement in the Denver area awarded owners of homes in a designated area on July x, 1989 an average of $12,000 for the loss of value because of contamination from a nearby nuclear facility. This reduced the basis of these homes and affects the gain or loss on subsequent sales. I have clients who sold after the 1989 date and the gain is increased on one rental sale. Another couple married in 1994 and each sold there former home (one a gain, the other a loss) (loss in the designated area) and purchased a replacement home.
Why would I need this information? A recent court settlement in the Denver area awarded owners of homes in a designated area on July x, 1989 an average of $12,000 for the loss of value because of contamination from a nearby nuclear facility. This reduced the basis of these homes and affects the gain or loss on subsequent sales. I have clients who sold after the 1989 date and the gain is increased on one rental sale. Another couple married in 1994 and each sold there former home (one a gain, the other a loss) (loss in the designated area) and purchased a replacement home.
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