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JOEGGFOOL writes:

Does the Deemed Sale and Repurchase Election apply to one's residence. If so, does the $250k cap gains deduction also apply to this transaction?

I reply:

I had that very idea about two years ago. Run a search on this board for "Shore sale." Be sure to read the WHOLE thread, because I quote the opinion of Kaye Thomas, author of www.fairmark.com , a tax attorney (unlike me). Unfortunately, the answers appear to be yes and NO, in that order. In other words, it's a really BAD idea because you will pay taxes on gain that likely otherwise would have been excludable from income. --Bob
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