Little-Known Rule Can Slash Your Principal Residence Tax Break

Are you thinking about selling your principal residence?

Then you may be eligible to take advantage of some huge tax savings.

I’m talking about the “principal residence gain-exclusion break.”

The good news:

Thankfully, the federal income tax gain exclusion break for principal residence sales is still on the books.

Here’s what it can do for you…

If you’re unmarried, the exclusion can shelter up to $250,000 of your home sale gain. If you’re married, it can shelter up to $500,000!

The bad news:

You should be aware of a little-known rule that can slash your allowable gain exclusion.

It kicks in if you haven’t always used the property as your principal residence.

How can you hang on to your full exclusion and side step this dangerous rule that’s hiding in the tax code?

For starters, you need to pass the two tests:

The Ownership and Use Tests

To take full advantage of the principal residence gain exclusion break, you have to pass two tests.

To pass the “ownership test,” you must have owned the home for at least two years out of the five-year period ending on the sale date.
To pass the “use test,” you must have used the home as your principal residence for at least two years out of the five-year period ending on the sale date.

And that’s just for starters.

By the way, to come out a winner:

Yes. We’re starting to get into the details, but let’s not do it in this short email. Let’s deal with all this properly in my new article.

It’s easy to get. Just…

“Little-Known Rule Can Slash
Your Principal Residence Tax Break”