TAX 3300 Chapter Notes - Chapter 13: Unemployment Benefits
Document Summary
Chapter 13: section 121 of internal revenue starts page 35 of ch 13. A taxpayer"s personal residence is a personal use asset. Therefore a realized loss from the sale of a personal residence is not recognized. Recognized gain from sale of personal residence is taxable. Taxpayers meeting the 121 exclusions requirements are allowed to exclude up to ,000 of realized gain on sale of a principal residence. Principal residence: depends upon all of the facts and circumstances in each case . Where the taxpayer spends most of his or her time. Does not have to be a house. Includes the land on which a home sits ( so any gain on land also qualifies for exclusion) If the realized gain does not exceed ,000 there is no recognized gain. Amount realized is the : selling price less any selling expense. If a married couple files a joint return the 250,00 amount is increased to 500,000 if.
