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Section 121 Exclusion

omnk2000
Level 1

Hello.

One of my client sold their rental property back on 2018 that they leaved there for 10 years and rented for 2 years, And they did not take section 121 exclusion back on 2018 and they paid capital gain , my question is can we file amended tax return and take section 121 exclusion for 2018 and get their refund.

Thanks,

Khalid

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Just-Lisa-Now-
Level 15
Level 15

looks like you will have some nonqualified use in the 5 year period, but should be able to get some of the exclusion.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Just-Lisa-Now-
Level 15
Level 15
I dont know why not.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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BobKamman
Level 15

When did they move out, and when did they sell?

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omnk2000
Level 1

Thank you Bob for a quick respond , they moved out 2016 and sold the property on 07/20/2018.

Thanks.

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Just-Lisa-Now-
Level 15
Level 15

looks like you will have some nonqualified use in the 5 year period, but should be able to get some of the exclusion.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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omnk2000
Level 1

Thanks.

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omnk2000
Level 1

Bob, Im still waiting for your respond .

Thanks.

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BobKamman
Level 15

The "two years out of five" test is met according to the taxpayers' statements.  Either you know something the 2018 preparer didn't, or the 2018 preparer knew something that you don't.  I don't know either one of you, or the taxpayer.  

omnk2000
Level 1

I don't know what you mean by that, but I was the preparer, somehow I missed that part.

Thank you so much for your respond.

 

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Accountant-Man
Level 12

2018 1040s can be amended through 4/15/2022 or 10/15/2022, if extended.

** I'm still a champion... of the world! Even without The Lounge.
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omnk2000
Level 1

Thank you Man.

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