Section 121

Section 121 (26 U.S.C.§121)

The Internal Revenue Code section that addresses taxable income upon the sale of a principal residence.An unmarried individual may exclude up to $250,000 of gain from income;married persons filing joint returns may exclude up to $500,000 of gain.The taxpayer must have owned and occupied the property for at least 2 of the prior 5 years and this exclusion can be used as frequently as every 2 years.For many Americans,this ability to buy a home, fix it up, sell it in 2 years for a large profit, and then do it all over again is their primary investment vehicle and “savings account.”As a result, statistics regarding the low level of savings in the United States are somewhat misleading.To find the law's text, see the instructions at Section (federal code).

References in periodicals archive ?
The acts committed by terrorists attract provision of section 121 and 121A of the RPC apart from other provisions of the law.
A Public Notice for the purposes of Section 121 of The Charities Act 2011 Canal & River Trust acting as Trustee of The Waterways Infrastructure Trust (charity registration number 1146792-2) (the Charity) gives notice that the Charity proposes to make the following disposal of an interest in land: The surrender of rights to maintain and use a section of the canal by-wash (shown as a red line on the plan to this notice) leading from the north bank of the Huddersfield Narrow Canal around Lock 24E and back into the same canal off Rotcher Lane, Huddersfield HD7 5AH.
It is a criminal offence under section 121 of the Water Industry Act 1991 to contravene conditions regulating the nature and composition of trade effluent discharged into a public sewer.
He has also been booked under IPC Section 121 (waging or attempting to wage war, or abetting waging of war, against the Government of India).
Taking the law into their own hands, police filed two FIRs against Akbaruddin and booked him under section 121 of the IPC (waging or attempting to wage war or abetting waging of war against the Union) and 153-A (promoting enmity between different groups).
Cases have been booked against Owaisi under IPC section 121 (waging war against nation), and 153 A (promoting enmity between religious groups).
There is one tax provision that shields asset appreciation from income taxation and does not require the death of the asset's owner--namely, the exclusion of gain on the sale of a principal residence under section 121.
Nothing in the legislative history indicates that Congress intended section 121 to exclude gain on the sale of property that does not include a house or other structure used by the taxpayer as his principal place of abode.
111) This benefit, often referred to as the section 121 exclusion, can be used for a home sale every two years, (112) as long the owner used the home as his principal residence for at least two years in the five-year period preceding the sale.
Section 121 of the SAFETEA-LU TCA under the title "Highway Provisions," entitled "Effective Date," provides that SAFETEA-LU TCA and the amendments it makes take effect on June 8, 2008, except as otherwise provided in the act, and should be treated as being included in SAFETEA-LU as of June 6, 2008.
It ruled that only the depreciation deduction claimed on the home office portion of the principal residence after May 5, 1997 would have to be reported as taxable gain, while the balance of the gain would remain eligible for the exclusion of code section 121.
IRC Section 121 enables a homeowner to exclude capital gain taxes (up to $250,000 if filing as a single, and $500,000 if married and filing jointly) if living in the house as a primary residence for two of the last five years.