A taxpayer who otherwise meets the ownership and use testson the sale of her principal residence may not be allowed to exclude all of her realized gain if the taxpayer has nonqualified use of the home before selling.

Question

Quizplus · Accepted Answer

This is true. If a taxpayer has nonqualified use of their home before selling, they may have to allocate the gain between the qualified and nonqualified use portions and may not be able to exclude all of the realized gain.

A Taxpayer Who Otherwise Meets the Ownership and Use Testson