Tax Facts

7855 / Can a taxpayer elect to not apply the otherwise available exclusion for gain on the sale or exchange of a principal residence?

Updated: October 23, 2026 at 07:04 PM
A taxpayer may make an election not to have the exclusion of gain on the sale or exchange of a principal residence apply. If this election is made, the gain from the sale or exchange of a principal residence would not be excluded.1




1. IRC § 121(f); Treas. Reg. § 1.121-4(g).


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