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Financial Planning / Tax Strategies


Subject:  Re: Home sale gain exclusion Date:  10/22/2001  11:42 PM
Author:  pbpapa Number:  54769 of 123001

Probably. However, they might be able to sell a prorated exclusion to a sypathetic auditor who was in a good mood. Warning: what follows is pretty agressive.

The law says that a prorated exclusion applies if the move was due to a change in health, employment, or other unforeseen circumstances as prescribed by regulation. Since the IRS hasn't issued such regulations 4 years and counting after the law was enacted, I don't think it's totally unreasonable for people to start defining them for themselves.

Also, the law makes no connection between the home gain exclusion and the employment requirements for deductible moving expenses.