A taxpayer who otherwise meets the ownership and use tests 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

If a taxpayer has nonqualified use of the home before selling, she may not be able to exclude all of her realized gain even if she meets the ownership and use tests. The amount of gain that can be excluded will be reduced based on the nonqualified use.

A Taxpayer Who Otherwise Meets the Ownership and Use Tests