Wyatt sells his principal residence in December 2017 and qualifies for the § 121 exclusion. He sells another principal residence in November 2018. Under no circumstance can Wyatt qualify for the § 121 exclusion on the sale of the second residence.

Question

Quizplus · Accepted Answer

According to the IRS rules, a taxpayer can only claim the § 121 exclusion once every two years. As Wyatt already claimed the exclusion for the sale of his first residence in December 2017, he would not be able to claim it again for the sale of his second residence in November 2018, since less than two years have passed. Therefore, the answer is false.

Wyatt Sells His Principal Residence in December 2017 and Qualifies