Change to Tax Exclusion on Sale of Primary Residence
The Housing and Economic Recovery Act of 2008 changed the tax rules around the sale of primary residences in a way that has not been widely discussed. Homeowners may no longer be able to claim a full $250,000 (or $500,000 for married filing jointly) capital gains exclusion for a primary residence despite living there for 2 of the past 5 years. The new rules, which went into effect at the beginning of 2009, still use