Subject:  re: Tax exemption on residence
From:  Al Merola
Date:  Thu, 20 Jun 2002

Hi. Thank you for the opportunity for asking this question. Is there any changes regarding the 24 months occupancy rule in order to get the 250k per person or 500k per married couple? If they leave on the 22nd month or?. If they are buying a more expensive home does the exemption really matter?

Al

Answer

Date:  28 Jun 2002

Hello Al,

There is no change, except the IRS has issued regulations explaining the exclusion. You may qualify for a partial exclusion if you have to move before meeting the requirements if you have to sell the home because of a change in employment.

It no longer makes any difference if you buy a more expensive home after you sell your home. Those old rules were repealed when the $250,000/$500,000 exclusions were enacted.

Good luck!
Mike Gray

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