Congress Limits Gain Exclusion on the Sale of Some Primary Residences....

When Congress passed the Housing Assistance Act of 2008, their goal was to help those people who were losing their homes in foreclosure. One of the side effects of the bill, however, was a change that could affect taxation on the gain from the sale of your personal residence.

This new law modifies the $250,000/$500,000 exclusion on the sale-of-your-personal-residence rule and penalizes you for time that your property is not your primary residence; you effectively have to prorate the gain between the periods the property was not your primary residence, and the periods that it was. (Your primary residence is the place you live; the address you use on your drivers license; where you’re registered to vote, etc.)

Click here to learn more about this new law and how it might affect you.