Hello,

US citizen who leaves abroad sold his property and would like to qualify under topic 523 'Selling your home'.

More details:

- The individual did not reside in this property since according to him 'it was too small for his 7 person family'.

- That's the only property this individual had prior to the sale. He rented another house for his family.

- The individual used the consideration to buy another house which he currently resides in.

- There is no taxes in the country which the property is located. The sale is fully exempt. 

My first reaction would be that this transaction does not qualify for gain exclusion from home selling. 

I would like to hear from you what do you think.

Thanks,