Lesson Viewed

Basic Federal Income Taxation: Property Transactions: Exclusion of Gain on the Sale of a Principal Residence

This lesson is best used after studying Federal Income Taxation: Property Transaction, in class. The lesson includes problem sets to work through, allowing you to apply the Code and Regs. to a variety of situations involving exclusion of gain on the sale of a principal residence, under IRS Code section 121.

Learning Outcomes

On completion of the lesson, the student will be able to:
1. Recognize that § 121 provides a permanent exclusion for up to $250,000 (or $500,000 for joint returns) of gain on the sale of a principal residence.
2. Calculate the amount of gain excluded under § 121 on the sale of a principal residence.
3. List the circumstances that may reduce the maximum § 121 exclusion amount.


Access Denied
Access to CALI Lessons is restricted to people affiliated with CALI member organizations and those who have purchased individual memberships. You may register or login to run CALI Lessons.

Lesson Authors