Taxpayer owns a home in Atlanta.His company transfers him to Chicago on January 2,2014,and he sells the Atlanta house in early February 2014.He purchases a residence in Chicago on February 3,2014.On December 15,2014,taxpayer's company transfers him to Los Angeles.In January 2015,he sells the Chicago residence and purchases a residence in Los Angeles.Because multiple sales have occurred within a twoyear period,§ 121 treatment does not apply to the sale of the second home.

Question

Taxpayer owns a home in Atlanta.His company transfers him to Chicago on January 2,2014,and he sells the Atlanta house in early February 2014.He purchases a residence in Chicago on February 3,2014.On December 15,2014,taxpayer's company transfers him to Los Angeles.In January 2015,he sells the Chicago residence and purchases a residence in Los Angeles.Because multiple sales have occurred within a two­year period,§ 121 treatment does not apply to the sale of the second home.

Quizplus · Accepted Answer

The exception to the multiple sale rule associated with employment transfers applies.Note,however,that the amount of the § 121 exclusion in this case is limited unless the election to forgo the § 121 exclusion on the sale of the first residence is made.

Taxpayer Owns a Home in Atlanta