title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Friday, March 31, 2006
 
Starting Date For Sec. 121 Exclusion

 

Q:

Subject: section 121
 
Kerry, I saw your article on the internet and would value your opinion on the following situation.  I purchased land to build on 2 years ago.  I built the home and moved in 1 year ago.  My mail has always gone to a PO box.  Could I sell my home based on the land purchase, or does the date I turned on the power at the new residence start my 2 years?  (I did not sell a home in the previous 2 years)

Thank you for your time,

A:

The two years for qualifying for the Section 121 tax free exclusion begins when you both own it and occupy it as your primary residence.  Unless you were living on the lot prior to and during construction (tent, motorhome, etc?), this couldn't be possible until you actually moved into the completed house.

Kerry Kerstetter

Follow-Up:

Thank you for your response.  I just may contact you again if my accountant doesn't feel confident about these issues.  I appreciate your time.
 
 

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 3/31/2006 11:04:00 AM Send this post:

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