Internal Revenue Code Irc Section 121

This exception is known as the home sale gain exclusion and it s found in section 121 of the internal revenue code.

Internal revenue code irc 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. 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. Internal revenue code 121.

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. Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. How the home sale gain exclusion works now there is an exception to the general rule of paying tax on your gain when it comes to your primary residence.

Exclusion of gain from sale of principal residence on westlaw. For more detailed codes research information including annotations and citations please visit westlaw. Tax consequences of home sales and foreclosures.