"Al Bundy" <postmaster[at]127.0.0.1> wrote:

- quote -

Just because there isn't a specific citation of the clients
reason for sale in pub 523, find out why he chose to sell at
the time he sold. If he thought he HAD to sell due to a
misunderstanding of the code, that might be perceived as an
unforeseen circumstance. Just make sure the client knows how
much risk of losing the position at audit there is.

Mike Lewis, CPA

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- quote -

There is no reinvestment rule, no mixing or matching or
anything. They get to pay the tax and have learned to ask
first, do it after.

Helen, EA in PA
Member of The Tax Gang
Director, National Assoication of Enrolled Agents
Immediate Past President, PA Society of Enrolled Agents

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Al Bundy wrote:

- quote -

Assuming you can't find any reason under the unforeseen
circumstance rule, there is no exclusion allowed. He failed
the two year ownership rule.

--
Alan
http://taxtopics.net

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Have a case where guy sold his home after 22 mos ownership.
Believed that the home repurchase within 2 years thing was
still the guideline for putting off capital gains.

Purchased 6/2001; sold 4/2003; close to 6 figures cap gains.
Lived in it during ownership. He was renter of the house
and lived in continually for like 2 years before purchase
while renting. I went through the safe harbors list in
pub 523. Doesn't seem to apply. Just sold one house and
bought another within a month. Same city, job etc.

Any hope for these folks? Can't prorate, go under old 2 yr
reinvest rule, mix & match, anything?

Thanks...

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