Planning opportunities with the Sec. 121 Partial Exclusion.
Sec. 121 allows taxpayers to exclude up to $250,000 ($500,000 for married taxpayers filing jointly and surviving spouses) of gain from the sale of a principal residence. This article discusses the requirements to qualify for the exclusion of gain and the partial exclusion of gain available in certain circumstances to taxpayers that do not meet the requirements for the full exclusion.
Cockrum, R.B. & Cabán-García, M.T. (2008). Planning opportunities with the Sec. 121 Partial Exclusion. The Tax Adviser, 39(8), 508-514.
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