August 01st, 2016

TAX TIP OF THE DAY...   Sale of home due to new baby

Generally, you have to own and use a home for at least 2 years before being eligible for a tax-free sale of your main home.  However, the IRS allowed a couple who unexpectedly had a new baby to qualify for the tax break even though they had lived in their condo for less than the required 2 years due to the "unforeseen circumstances".  Their otherwise taxable gain became tax-free!  Illness and job changes also qualify for this leniency. 

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