Foreign Property and Sec. 121 Exclusion

[WhiteOleander]

Have a client who plans to sell her house in Mexico this year. (she is US citizen). She has lived there since 2000. She will now live permanently in the US.

I have checked everywhere I can think. I believe that even though the property is in Mexico, it will still be qualified for the Sec. 121 exclusion.

Anyone know if this is incorrect? If so, can you give me cite?

[Bird Legs]

Tax on foreign residence

It appears that the same rule applies to a foreign residence sale as to a domestic sale.
Go to Google: Type in: tax on foreign residence then click on Tax Breaks for
Foreign Residence.

[WhiteOleander]

It appears that the same rule applies to a foreign residence sale as to a domestic sale.
Go to Google: Type in: tax on foreign residence then click on Tax Breaks for
Foreign Residence.

Thanks so much Birdlegs!!!