Primary Residence is IRC Code 121

We are often asked if IRC Section 1031 applies when you sell your Primary Residence.  Actually, you are usually in better shape, tax wise that is, if you can use Section 121.   In general, this says that if you sell your primary residence after residing there for 2 years or more, the first $250,000 of gain is excluded if you are single, or the first $500,000 of gain is excluded if you are married.  We actually know couples who sell/buy a new house every two years to enjoy the tax benefits of Section 121!

 

Katie Zulanas