SECTION 121: GAIN ON SALE OF PRINCIPAL RESIDENCE
01.Core Concepts
• Gain can be excluded from income up to: • $500,000 for MFJ • $250,000 for all others • Requirements: • Owned and used as principal residence for 2 out of the last 5 years. A one-year stay in a nursing home facility counts towards the 2-year requirement. • Exclusion can be used only once every 2 years.