Home
Tax Articles
Tax FAQ
Introducing Our Firm
Our Services
Real Estate Taxletter
Need Help?
Other Websites
Site Map

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+

Can I qualify for the exclusion of gain from the sale of a residence if my parents live there?

August 10, 2011


From:  Alexia
Date:  18 Oct 2010

My parents are living in a residence owned by me. I pay everything for the house, but I have never lived there. I want to sell the home. Can the gain qualify for the exclusion for gain from the sale of a residence?

Answer

Date:  8 Nov 2010

Hello Alexia,

No. The residence must have been your principal residence. You don’t “get credit” for your parents’ use of the home for this test. (Internal Revenue Code Section 121(a).)

The only exception is you get to count use by a former spouse for a residence received as part of a property division in a divorce or used by a former spouse pursuant to a divorce decree. (Internal Revenue Code Section 121(d)(3).)

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

Can I qualify for the exclusion of gain from the sale of a residence if my parents live there?

Home | Real Estate Taxletter | Articles | FAQ | Introducing Michael Gray, CPA | Need Help? | Other Links


Michael Gray, CPA
2190 Stokes St., Suite 102
San Jose, California 95128-4512
(408) 918-3162
Fax (408) 998-2766
email: mgray@taxtrimmers.com
© 2016
Subscribe to
Michael Gray, CPA's
Real Estate Tax Letter
!

subscribe
unsubscribe