121 exclusion when someone goes in assisted living

Technical topics regarding tax preparation.
#1
PHall  
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Pub 523 seems to say that if someone sales their house because of going in an assisted living facility they actually can rent it for 4 years and sale it with the 121 exclusion.
Silly question because that is what it says but I thought I would ask if anyone has used that.
 

#2
dave829  
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It’s also what sec. 121(d)(7) and Reg. 1.121-1(c)(2)(ii) say.
 

#3
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I think Section 121(d)(7) - and the IRS Pub, also - both say much more than just "one year is enough." Here's what I found in the Pub, tho I have never used it, not yet...
In addition, any time you spent living in a care facility (such as a nursing home) counts toward your residence requirement, so long as the facility has a license from a state or other political entity to care for people with your condition.
 

#4
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Follow-up on my just-prior post: How does the special rule for time spent in a qualified care facility reconcile with the definition of "period of nonqualified used" in IRC 121(b)(5)? Does the IRS Pub explain that...?
 


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