If a taxpayer sells his personal residence and purchases a new residence, all or part of the realized gain may be recognized.

Question

Quizplus · Accepted Answer

The realized gain on the sale of a personal residence may be recognized, but certain conditions must be met in order to qualify for the exclusion of up to $250,000 ($500,000 for married taxpayers filing jointly). If the taxpayer purchases a new residence, they may still be able to exclude the gain under certain circumstances, such as if they meet the ownership and use tests for the previous residence and purchase a new residence within a certain timeframe.

If a Taxpayer Sells His Personal Residence and Purchases a New