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February 14, 2022
Question

Publication 523 / Partial Exclusion Due to Unforeseeable Event

  • February 14, 2022
  • 1 reply
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Purchased 2nd home in 2011 for mother to live in to be close to sister to care for her. Mother died in December 2019. The house was never rented and was sold in January 2021. Page 6 states: " You, your spouse, a co-owner of the home, or anyone else for whom the home was his or her residence: (1) Died.

 

My questions are:

1 - Would this qualify for a partial exclusion due to unforeseeable event (death)?

2 - If it does quality, how would I calculate and document in Turbo Tax?

    1 reply

    February 14, 2022

    You do not qualify for a partial exclusion due to unforeseeable events, as this partial exclusion only applies to your main home, not a second home.

     

    Page 3 of IRS Pub 523 says:

     

    You may take the exclusion, whether maximum or partial, only on the sale of a home that is your principal residence, meaning your main home.

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