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Section 121 Exclusion

Forum|Forum|5 years ago
April 3, 2021
10 replies
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Hello.

One of my client sold their rental property back on 2018 that they leaved there for 10 years and rented for 2 years, And they did not take section 121 exclusion back on 2018 and they paid capital gain , my question is can we file amended tax return and take section 121 exclusion for 2018 and get their refund.

Thanks,

Khalid

ProSeries Professional

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

looks like you will have some nonqualified use in the 5 year period, but should be able to get some of the exclusion.

Intuit Community Champion

Intuit Community Champion

I dont know why not.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Level 15

When did they move out, and when did they sell?

Level 3

Thank you Bob for a quick respond , they moved out 2016 and sold the property on 07/20/2018.

Thanks.

Intuit Community Champion

Answer

Intuit Community Champion

looks like you will have some nonqualified use in the 5 year period, but should be able to get some of the exclusion.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Level 13

2018 1040s can be amended through 4/15/2022 or 10/15/2022, if extended.

** I am "Elevating with Intention!"

Level 3

Thank you Man.