Section 121 Excluding Gain on Sale of Primary Survives Tax Reform

[Lance Lvovsky]

It appears that the 2 out of 5 year rule excluding gain on sale of primary residence will remain intact. Some of you may have heard that initially the plan was to change the rule to where the taxpayer had to own and use the primary for 5 out of the last 8 years.

According to the Conference Committee, this proposed amendment will NOT be adopted, meaning the 2 out of 5 year rule will remain the same.

To those of you who love tax law as much as I do, here is a great layout of how the proposed Tax Reform Bill will affect you:

http://src.bna.com/t7h

Page 96 discusses Section 121.

Hope this helps!