Section 121
Also called: home sale exclusion · principal residence exclusion · IRC 121
The federal provision that can exclude qualifying gain on the sale of a principal residence, subject to its requirements and limits.
What it means in practice.
Section 121 is separate from Section 1031. Properties with mixed personal and investment use, or properties converted between uses, can require coordination between the two provisions.
Why it matters.
Homeowners should not assume a principal residence belongs in a 1031 exchange simply because it is real estate.
Additional notes.
Section 121 is separate from Section 1031. Properties with mixed personal and investment use, or properties converted between uses, can require coordination between the two provisions.
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