Section 121 Exclusion

[omnk2000]

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

[Just-Lisa-Now-]

I dont know why not.

[BobKamman]

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

[omnk2000]

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

Thanks.

[Just-Lisa-Now- · Accepted solution]

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

[omnk2000]

Thanks.

[omnk2000]

Bob, Im still waiting for your respond .

Thanks.

[BobKamman]

The "two years out of five" test is met according to the taxpayers' statements.  Either you know something the 2018 preparer didn't, or the 2018 preparer knew something that you don't.  I don't know either one of you, or the taxpayer.  

[Accountant-Man]

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

[omnk2000]

I don't know what you mean by that, but I was the preparer, somehow I missed that part.

Thank you so much for your respond.

[omnk2000]

Thank you Man.