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Income Tax Planning
Chapter 13: Nontaxable Exchanges/PARTIAL SECTION 121 EXCLUSION
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Chapter Study Session

Chapter 13: Nontaxable Exchanges

PARTIAL SECTION 121 EXCLUSION

01.Core Concepts

• A taxpayer can qualify for a reduced exclusion if sale is due to: • Change in employment, • Change of health, or • Other unforeseen circumstance • Exclusion based on the period of ownership between the last sale and the current sale. = Partial Exclusion Number of Qualifying Months Max Exclusion Amount x 24 Months