Sale of a residence can trigger thorny tax questions
3) If we are running out of time to qualify for the exclusion should we lower the price (as our realtor has suggested on more than one occasion), or will the higher sales price off-set any higher taxes we would owe without the exclusion? A. First, a refresher on the sale of residence exclusion under IRS section 121. A single homeowner may exclude up to $250,000 of gain, and a married couple may exclude up to $500,000 of gain realized on the sale of a primary residence. To qualify for Read more [...]