If a principal residence is sold before satisfying the ownership and use tests,part of the gain may be excluded if the sale is due to a change in employment,health,or unforeseen circumstances.

Question

Quizplus · Accepted Answer

This statement is true. If the sale of a principal residence does not satisfy the ownership and use tests, a partial exclusion of gain may still be available if the sale is due to certain qualifying reasons such as a change in employment or health. This is known as the reduced exclusion.

If a Principal Residence Is Sold Before Satisfying the Ownership