TaxGuyBill
Level 15

That is what it sounds like to me too ... a sale of 10% of the property.

However, the exclusion is NOT limited to $25,000/$50,000 (10%).  You can take the full exclusion up to $250,000/$500,000.  However, whenever the other 90% is sold, the combined total of all partial-interest sales is limited to  $250,000/$500,000.  So if you exclude $100,000 now, then when the other 90% is sold the maximum exclusion would need to be reduced by $100,000.

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