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Section 121: The $500k Exclusion Explained
Manage episode 504190490 series 3659469
Earmark Media, Jeremy Wells, EA, and CPA에서 제공하는 콘텐츠입니다. 에피소드, 그래픽, 팟캐스트 설명을 포함한 모든 팟캐스트 콘텐츠는 Earmark Media, Jeremy Wells, EA, and CPA 또는 해당 팟캐스트 플랫폼 파트너가 직접 업로드하고 제공합니다. 누군가가 귀하의 허락 없이 귀하의 저작물을 사용하고 있다고 생각되는 경우 여기에 설명된 절차를 따르실 수 있습니다 https://ko.player.fm/legal.
Jeremy breaks down the complex rules surrounding Section 121's capital gains exclusion for home sales, using the Weber v. Commissioner tax court case to illustrate how taxpayers can lose out on excluding up to $500,000 in gains. The episode covers the critical two-out-of-five year ownership and use tests, explains how rental conversions can disqualify you from the exclusion, and details the partial exclusion exceptions for employment changes, health issues, and unforeseen circumstances. Understanding these nuances is essential since home sales often represent the largest financial transactions in taxpayers' lives.
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- (00:00) - Section 121
- (01:05) - Capital Gain Exclusion Introduction
- (03:21) - Case Study: Webert vs Commissioner
- (05:51) - Defining Principal Residence
- (15:58) - Ownership and Use Tests
- (27:43) - Understanding Spousal Eligibility for Exclusion
- (28:51) - Principal Residence Usage Requirements
- (30:52) - Counting Days and Periods of Absence
- (32:36) - Special Considerations for Older Taxpayers
- (33:57) - Ownership Through Trusts and LLCs
- (36:57) - The Once Every Two Years Rule
- (41:10) - Non-Qualified Use Explained
- (47:06) - Case Study: The Webers' Tax Court Case
- (48:12) - Partial Exclusions and Safe Harbors
- (56:51) - Conclusion and Key Takeaways
Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com
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This podcast is a production of the Earmark Media
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