Selling A Principal Residence

Description

The sale of a personal residence with a gain can be subject to favorable tax treatment. Focus on a special rule that is available for the sale of a principal residence.

The calculation of the potential gain or loss will be discussed. Qualification for the favorable gain exclusion will be explained. Special facts related to the ownership and use of the residence will be identified and their consequence evaluated.

Discuss the sale of a personal residence at a loss during this session. Plus, identify and evaluate tax planning ideas and strategies. Changes made by the 2017 TCJA are identified and evaluated.

Highlights

• Determination of the gain from the sale of a principal residence
• Explanation of the requirement that must be satisfied to be eligible for the exclusion including consideration of special ownership and use situations
• Calculation of the amount of the exclusion
• Tax considerations if the personal residence is sold at a loss
• Tax planning ideas and strategies

Objectives

• Consider the law which determines the calculation of the recognized gain or loss.
• Explain the requirements that must be satisfied to be eligible for the exclusion.
• Identify the significance of special facts related to ownership and use of the residence.
• Determine the amount of the exclusion.
• Evaluate the tax considerations related to the sale of a personal residence at a loss.
• Identify and evaluate tax planning strategies.

Designed For

CPAs, lawyers, tax professionals and personal financial advisers.