Not long ago and on the same day, the IRS released three private letter rulings that allowed partial home-sale profit exclusions for hardships.
Normally, the law allows you to exclude home-sale profits of up to $250,000 if single, and $500,000 if married, providing you have
lived in your home for two of the last five years;
owned your home for two of the last five years; and
not taken the exclusion in the last two years.
If you fail to meet the three tests ... Log in to view full article.