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Section 121 irc. Section 121 of the internal revenue code of 1986 as amended by this section shall be applied without regard to subsection c 2 b thereof in the case of any sale or exchange of property during the 2 year period beginning on the date of the enactment of this act if the taxpayer held such property on the date of the enactment of this act and fails to meet the ownership and use requirements of subsection a thereof with respect to such property. 121 a exclusion gross income shall not include gain from the sale or exchange of property if during the 5 year period ending on the date of the sale or exchange such property has been owned and used by the taxpayer as the taxpayer s principal residence for periods aggregating 2 years or more. Section 121 a generally provides with certain limitations and exceptions that gross income does not include gain from the sale or exchange of property if during the 5 year period ending on the date of the sale or exchange the taxpayer has owned and 8.
Tax consequences of home sales and foreclosures. 121 b limitations.
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