It appears that the 2 out of 5 year rule excluding gain on sale of primary residence will remain intact. Some of you may have heard that initially the plan was to change the rule to where the taxpayer had to own and use the primary for 5 out of the last 8 years.
According to the Conference Committee, this proposed amendment will NOT be adopted, meaning the 2 out of 5 year rule will remain the same.
To those of you who love tax law as much as I do, here is a great layout of how the proposed Tax Reform Bill will affect you:
Page 96 discusses Section 121.
Hope this helps!
@Lance Lvovsky , I'm still waiting to see if it passes.
how about income offset... If you make over 500k Adjusted gross income .. is it a dollar for dollar deduction on the exclusion.. so if you make 1 mil adjusted you get zero benefit?
and is it an average of say last 3 years.. to come up with AGI for the offset.. ???
thank you in advance.
Originally posted by @Steven Hamilton II :
@Lance Lvovsky, I'm still waiting to see if it passes.
Completely agree! Nothing is set in stone yet. With that being said, this bill has tremendous momentum, and the GOP has overcome some incredible roadblocks to get to where they are. It is looking like the bill will pass this coming week. There of course may still be changes.
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