Reduced Maximum Exclusion of Gain From Sale or Exchange of Principal Residence

Résumé

In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations relating to the reduced maximum exclusion available to certain taxpayers who sell or exchange their principal residence but who have not owned and used the property as their principal residence for two years of the preceding five years or who have excluded gain on a previous sale or exchange within the last two years. The text of those regulations also serves as the text of these proposed regulations.