Under what circumstances can a taxpayer obtain a partial exclusion if a home is sold before the use and ownership tests are satisfied?
A)change in employment that meets the requirement for a moving expense deduction
B)increased traffic due to widening of a road
C)birth of one child
D)divorce

Question

Quizplus · Accepted Answer

A taxpayer can obtain a partial exclusion if they sell their home before satisfying the use and ownership tests if the reason for the sale is due to a change in employment that meets the requirement for a moving expense deduction. This is known as an exception to the rule and can allow the taxpayer to still receive a prorated amount of the exclusion based on the amount of time they owned and lived in the home.

Under What Circumstances Can a Taxpayer Obtain a Partial Exclusion