While the basic concept for the gain exclusion for sale of a residence is fairly straightforward, there are numerous definitions, effective dates and special rules that can make any transaction complex.
This program covers the basics of Code Section 121 on the gain exclusion rule, along with the definitions.
Publication Date: November 2019
Designed For
Practitioners looking to gain knowledge regarding the exclusion rule of Code Section 121.
Topics Covered
- Introduction — importance, history
- Basic mechanics of §121
- What is a principal residence?
- Owned and used / time periods
- Marital status special rules
- Limitations and special rules
- Realized and recognized gain
- Mandatory ~ Election Out
- Reporting the sale
- Planning and review
- Forgiveness of debt [in appendix to slides]
Learning Objectives
- Recognize how to apply the gain exclusion rule of Code Section 121
- Develop a checklist to aid in application of the gain exclusion rule
- Describe recent developments and how they apply to your client
- Recognize policy considerations/legislative proposals
- Identify the best advice and planning opportunities for the taxpayer
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Annette Nellen
Annette Nellen, CPA, CGMA, Esq., is a professor in and director of San Jose State University's graduate tax program (MST), teaching courses in tax research, accounting methods, property transactions, advanced individual taxation, employment tax, ethics, leadership, and tax policy.
Annette chairs the AICPA Digital Assets Tax Task Force and serves on the AICPA Disaster Relief Tax Task Force. She formerly served on the AICPA Tax Executive Committee, including 2.5 years as chair. She was the lead author of the AICPA tax policy concept statement #1, Guiding Principles of Good Tax Policy: A Framework for Evaluating Tax Proposals (2001, updated 2017), still in use today. Annette is also active with the tax sections of the ABA, CalCPA and California Lawyers Association. Annette is the recipient of the 2013 Arthur J. Dixon Memorial Award given by the Tax Division of the AICPA, the highest award given by the accounting profession in the area of taxation. In 2019, Annette was the recipient of the CLA’s Benjamin F. Miller Award for outstanding achievement and contribution in the field of state and local taxation law. Annette was included in Accounting Today's 2024 List of the Most Influential People in Accounting.
Annette is a regular contributor to Tax Notes State, authoring a column called Moving Forward? She is the author of Bloomberg BNA Tax Portfolio #533, Amortization of Intangibles. She is co-author and co-editor of four tax textbooks from Cengage. Annette has testified before the House Ways & Means Committee, Senate Finance Committee, California Assembly Revenue & Taxation Committee, and tax reform commissions and committees on various aspects of federal and state tax reform. She maintains the 21st Century Taxation website and blog (www.21stcenturytaxation.com). Prior to joining SJSU in 1990, Annette was with Ernst & Young and the IRS.