3: Must-Know Facts About The 121 Exclusion- Because a Half Million Dollars Is On The Line
This episode delves into the 121 Exclusion, also known as the primary home sale exclusion, which allows significant tax savings for Americans selling their primary home, assuming they meet specific criteria.
Covering the fundamental conditions of the 121 Exclusion, emphasizing the necessity of owning and occupying the home for at least 730 days out of the last 1,825 days to qualify.
Detailed explanations are provided for five common mistakes related to this tax provision, including misconceptions about rental use, house hacking scenarios, and the prorating of exclusions under unforeseen circumstances.
00:00 Introduction to the 121 Exclusion
00:47 Understanding the Basics of the 121 Exclusion
05:06 Common Mistakes with the 121 Exclusion
12:38 Special Cases and Exceptions in the 121 Exclusion
25:32 Conclusion and Final Thoughts
Covering the fundamental conditions of the 121 Exclusion, emphasizing the necessity of owning and occupying the home for at least 730 days out of the last 1,825 days to qualify.
Detailed explanations are provided for five common mistakes related to this tax provision, including misconceptions about rental use, house hacking scenarios, and the prorating of exclusions under unforeseen circumstances.
00:00 Introduction to the 121 Exclusion
00:47 Understanding the Basics of the 121 Exclusion
05:06 Common Mistakes with the 121 Exclusion
12:38 Special Cases and Exceptions in the 121 Exclusion
25:32 Conclusion and Final Thoughts
