Perplexed wrote:

- quote -

All qualifications for a capital gains tax exclusion are
covered in IRS Pub 523, which is available at
http://www.irs.gov I do not know if it is available in
Spanish.

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"Perplexed" <subscribe[at]AshtonNW.com> wrote:

- quote -

See Example 4 in Reg. 1.121-3(d), which says,

"Sale or exchange by reason of health—(1) In general. A sale
or exchange is by reason of health if the primary reason for
the sale or exchange is to obtain, provide, or facilitate
the diagnosis, cure, mitigation, or treatment of disease,
illness, or injury of a qualified individual described in
paragraph (f) of this section, or to obtain or provide
medical or personal care for a qualified individual
suffering from a disease, illness, or injury. A sale or
exchange that is merely beneficial to the general health or
well- being of an individual is not a sale or exchange by
reason of health.

"(2) Physician's recommendation safe harbor. A sale or
exchange is deemed to be by reason of health if a physician
(as defined in section 213(d)(4)) recommends a change of
residence for reasons of health (as defined in paragraph
(d)(1) of this section)."

See http://snipurl.com/hyus

Stu

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I didn't see the Medical Reasons exception. Please give
me the cite so that I can print it out for him (Spanish
is his native language).

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Perplexed wrote:

- quote -

Not the "unforseen circumstances" exception. Use the MEDICAL
reasons exception to get a partial exclusion for your
capital gains.

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I have a friend whose wife gave birth prematurely within the
last 60 days. The baby is home but not thriving. He lives
~50 miles from his place of employment and would like to
move the family closer to work because Mom is having a tough
time. They haven't owned the home two years, the house was
purchased before the baby was born.

If the Ped MD wrote a letter stating that the child needs
the care of both parents and that his present commute is too
long, would that fit the "unforseen circumstances"
exception?

Is there specific language the MD should use?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >