Solved

Active duty military (re sec 121):. Home of Record: Florida, owns a home in state of WA. After living in his home in WA for 5 years, can he take the 121 exclusion?

Forum|Forum|6 years ago
June 3, 2019
1 reply
0 views

Question: Is military HOME OF RECORD a factor in qualifying for SEC 121 on sale of personal residence where ACTIVE DUTY MILITARY is stationed in a different state where he lived (state of residence) and owned home for 5 years and sells it. He intends to go back to HOME OF RECORD after service is complete.

Best answer by DanielV01

Yes, he may take the exclusion. This website does provide some good guidance: http://www.figuide.com/three-tax-considerations-for-military-personnel-when-selling-your-home.html. Basically, the IRS gives more leeway for military personnel on the rule, as they are aware that state of record may have very little to do with where the home is because of where he is stationed. However, if he was in the home for at least 24 months in the past 5 years (in this case for 5 straight), he may claim the exclusion.

DanielV01Answer

Yes, he may take the exclusion. This website does provide some good guidance: http://www.figuide.com/three-tax-considerations-for-military-personnel-when-selling-your-home.html. Basically, the IRS gives more leeway for military personnel on the rule, as they are aware that state of record may have very little to do with where the home is because of where he is stationed. However, if he was in the home for at least 24 months in the past 5 years (in this case for 5 straight), he may claim the exclusion.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"