TaxGuyBill
Level 15
12-06-2019
07:28 PM
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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.