Internal Revenue Code (IRC) section 121 exclusion in preparing a bankruptcy estate's income tax return. Bankruptcy cases that illustrate the flaws of the legal analysis used in denying a trustee's ability to assert IRC section 121 exclusion; Maximum exclusions allowed by IRC section 121 exclusion...
IRC Section 121 Exclusion of Gain from Sale of Principal Residence (a) Exclusion — Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as...
residence, however the Section 121(d)(10) limitation does not apply and gain (other than gain resulting from accumulated depreciation) may be excluded under Section 121 assuming that the sale otherwise satisfies the requirements for the home sale exclusion, such as the two-year use requirement. ...
(3) For exclusion from gross income of gain from involuntary conversion of principal residence, see section 121.