§ 121. Exclusion of gain from sale of principal residence

Footnotes

1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1964

   Revenue Act of 1964

   Pub. L. 88–272 title II § 206(a) · 78 Stat. 19

   Enacted · 26 U.S.C. § 121

   Added Pub. L. 88–272, title II, § 206(a), Feb. 26, 1964, 78 Stat. 38

   Source evidence

   Code source credit
   Added Pub. L. 88–272, title II, § 206(a), Feb. 26, 1964, 78 Stat. 38

   Enacted provision · exact public law section
   (a) In General.— Part III of subchapter B of chapter 1 (relating to items specifically excluded from gross income) is amended by redesignating section 121 as section 122 and by inserting before such section the following new section: “SEC. 121. GAIN FROM SALE OR EXCHANGE OF RESIDENCE OF INDIVIDUAL WHO HAS ATTAINED AGE 65. “(a) General Rule.— At the election of the taxpayer, gross income does not include gain from the sale or exchange of property if— “(1) the taxpayer has attained the age of 65 before the date of such sale or exchange, and “(2) during the 8-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as his principal residence for periods aggregating 5 years or more. “(b) Limitations.— “(1) Where adjusted sales price exceeds $20,000.— If the adjusted sales price of the property sold or exchanged exceeds $20,000, subsection (a) shall apply to that portion of the gain which bears the same ratio to the total amount of such gain as $20,000 bears to such adjusted sales price. For purposes of the preceding sentence, the term ‘adjusted sales price’ has the meaning 26 USC 1034. assigned to such term by section 1034(b) (1) (determined without regard to subsection (d) (7) of this section). “(2) Application to only one sale or exchange.— Subsection (a) shall not apply to any sale or exchange by the taxpayer if an election by the taxpayer or his spouse under subsection (a) with respect to any other sale or exchange is in effect. “(c) Election.— An election under subsection (a) may be made or revoked at any time before the expiration of the period for making a claim for credit or refund of the tax imposed by this chapter for the taxable year in which the sale or exchange occurred, and shall be made or revoked in such manner as the Secretary or his delegate shall by regulations prescribe. In the case of a taxpayer who is married, an election under subsection (a) or a revocation thereof may be made only if his spouse joins in such election or revocation. “(d) Special Rules.— “(1) Property held jointly by husband and wife.— For purpose of this section, if— “(A) property is field by a husband and wife as joint tenants, tenants by the entirety, or community property, “(B) such husband and wile make a joint return under section 6013 for the taxable year of the sale or exchange, and 68A Stat. 733. 26 USC 6013. “(C) one spouse satisfies the age, holding, and use requirements of subsection (a) with respect to such property, then both husband and wife shall be treated as satisfying the age, holding, and use requirements of subsection (a) with respect to such property. “(2) Property of deceased spouse.— For purposes of this section, in the case of an unmarried individual whose spouse is deceased on the date of the sale or exchange of property, if— “(A) the deceased spouse (during the 8-year period ending on the date of the sale or exchange) satisfied the holding and use requirements of subsection (a)(2) with respect to such property, and “(B) no election by the deceased spouse under subsection (a) is in effect with respect to a prior sale or exchange, then such individual shall be treated as satisfying the holding and use requirements of subsection (a)(2) with respect to such property. “(3) Tenant-stockholder in cooperative housing corporation.— For purposes of this section, if the taxpayer holds stock as a tenant-stockholder (as defined in section 216) in a cooperative 26 USC 216. housing corporation (as defined in such section), then— “(A) the holding requirements of subsection (a) (2) shall be applied to the holding of such stock, and “(B) the use requirements of subsection (a)(2) shall be applied to the house or apartment which the taxpayer was entitled to occupy as such stockholder. “(4) Involuntary conversions.— For purposes of this section, the destruction, theft, seizure, requisition, or condemnation of property shall be treated as the sale of such property. “(5) Property used in part as principal residence.— In the case or property only a portion of which, during the 8-year period ending on the date of the sale or exchange, has been owned and used by the taxpayer as his principal residence for periods aggregating 5 years or more, this section shall apply with respect to so much of the gain from the sale or exchange of such property as is determined, under regulations prescribed by the Secretary or his delegate, to be attributable to the portion of the property so owned and used by the taxpayer. “(6) Determination of marital status.— In the case of any sale or exchange, for purposes of this section— “(A) the determination of whether an individual is married shall be made as of the date of the sale or exchange: and “(B) an individual legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as married. “(7) Application of sections 1033 and 1034.— In applying sections 1033 (relating to involuntary conversions) and 1034 26 USC 1033, 1034. (relating to sale or exchange of residence), the amount, realized from the sale or exchange of properly shall be treated as being the amount determined without regard to this section, reduced by the amount of gain not included in gross income pursuant to an election under this section.”

2. 1976

   Pub. L. 94–455 § 1404(a) · 90 Stat. 1520

   Substituted · 26 U.S.C. § 121(b)(1)

   Pub. L. 94–455, § 1404(a), substituted “$35,000” for “$20,000” in three places

   Source evidence

   Code amendment note
   Subsec. (b)(1). Pub. L. 94–455, § 1404(a), substituted “$35,000” for “$20,000” in three places.

   Enacted provision · exact public law section
   (a) In General.— Section 121(b)(1) (relating to gain from sale 26 USC 121. or exchange of residence of individual who has attained age 65) is amended by striking out “$20,000” each place it appears therein and inserting in lieu thereof “$35,000”,

3. 1976

   Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520

   Struck · 26 U.S.C. § 121(c); 26 U.S.C. § 121(d)(5)

   Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”

   Source evidence

   Code amendment note
   Subsecs. (c), (d)(5). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

   Enacted provision · exact public law section
   (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

4. 1978

   Pub. L. 95–600 § 404(a) · 92 Stat. 2763

   Substituted · 26 U.S.C. § 121

   Pub. L. 95–600, § 404(a), substituted “One-time exclusion of gain from sale of principal residence by individual who has attained age 55” for “Gain from sale or exchange of residence of individual who has attained age 65” in section catchline

   Source evidence

   Code amendment note
   Pub. L. 95–600, § 404(a), substituted “One-time exclusion of gain from sale of principal residence by individual who has attained age 55” for “Gain from sale or exchange of residence of individual who has attained age 65” in section catchline.

   Enacted provision · exact public law section
   (a) General Rule.— The section heading and subsections (a) and (b) section 121 are amended to read as follows: 26 USC 121. “SEC. 121. ONE-TIME EXCLUSION OF GAIN FROM SALE OF PRINCIPAL RESIDENCE BY INDIVIDUAL WHO HAS ATTAINED AGE 55. “(a) General Rule.— At the election of the taxpayer, gross income does not include gain from the sale or exchange of property if— “(1) the taxpayer has attained the age of 55 before the date of such sale or exchange, and “(2) during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as his principal residence for periods aggregating 3 years or more. “(b) Limitations.— “(1) Dollar limitation.— The amount of the gain excluded from gross income under subsection (a) shall not exceed $100,000 ($50,000 in the case of a separate return by a married individual). “(2) Application to only 1 sale or exchange.— Subsection (a) shall not apply to any sale or exchange by the taxpayer if an election by the taxpayer or his spouse under subsection (a) with respect to any other sale or exchange is in effect. “(3) Additional election if prior sale was made on or before july 26, 1978.— In the case of any sale or exchange after July 26, 1978, this section shall be applied by not taking into account any election made with respect to a sale or exchange on or before such date.”

5. 1978

   Pub. L. 95–600 § 404(a) · 92 Stat. 2763

   1. Substituted · 26 U.S.C. § 121(a)

      Pub. L. 95–600, § 404(a), substituted “55” for “65”

   2. Substituted · 26 U.S.C. § 121(a)

      Pub. L. 95–600, § 404(a), substituted “5-year” for “8-year”

   3. Substituted · 26 U.S.C. § 121(a)

      Pub. L. 95–600, § 404(a), substituted “3 years” for “5 years”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 95–600, § 404(a), substituted “55” for “65”, “5-year” for “8-year”, and “3 years” for “5 years”.

   Enacted provision · exact public law section
   (a) General Rule.— The section heading and subsections (a) and (b) section 121 are amended to read as follows: 26 USC 121. “SEC. 121. ONE-TIME EXCLUSION OF GAIN FROM SALE OF PRINCIPAL RESIDENCE BY INDIVIDUAL WHO HAS ATTAINED AGE 55. “(a) General Rule.— At the election of the taxpayer, gross income does not include gain from the sale or exchange of property if— “(1) the taxpayer has attained the age of 55 before the date of such sale or exchange, and “(2) during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as his principal residence for periods aggregating 3 years or more. “(b) Limitations.— “(1) Dollar limitation.— The amount of the gain excluded from gross income under subsection (a) shall not exceed $100,000 ($50,000 in the case of a separate return by a married individual). “(2) Application to only 1 sale or exchange.— Subsection (a) shall not apply to any sale or exchange by the taxpayer if an election by the taxpayer or his spouse under subsection (a) with respect to any other sale or exchange is in effect. “(3) Additional election if prior sale was made on or before july 26, 1978.— In the case of any sale or exchange after July 26, 1978, this section shall be applied by not taking into account any election made with respect to a sale or exchange on or before such date.”

6. 1978

   Pub. L. 95–600 § 404(a) · 92 Stat. 2763

   1. Substituted · 26 U.S.C. § 121(b)

      Pub. L. 95–600, § 404(a), in par. (1) substituted provisions respecting dollar limitations for amount of gain for provisions setting forth applicable limitations where the adjusted sales price exceeds $35,000

   2. Added · 26 U.S.C. § 121(b)

      Pub. L. 95–600, § 404(a), in par. (1) added par. (3)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 95–600, § 404(a), in par. (1) substituted provisions respecting dollar limitations for amount of gain for provisions setting forth applicable limitations where the adjusted sales price exceeds $35,000 and added par. (3).

   Enacted provision · exact public law section
   (a) General Rule.— The section heading and subsections (a) and (b) section 121 are amended to read as follows: 26 USC 121. “SEC. 121. ONE-TIME EXCLUSION OF GAIN FROM SALE OF PRINCIPAL RESIDENCE BY INDIVIDUAL WHO HAS ATTAINED AGE 55. “(a) General Rule.— At the election of the taxpayer, gross income does not include gain from the sale or exchange of property if— “(1) the taxpayer has attained the age of 55 before the date of such sale or exchange, and “(2) during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as his principal residence for periods aggregating 3 years or more. “(b) Limitations.— “(1) Dollar limitation.— The amount of the gain excluded from gross income under subsection (a) shall not exceed $100,000 ($50,000 in the case of a separate return by a married individual). “(2) Application to only 1 sale or exchange.— Subsection (a) shall not apply to any sale or exchange by the taxpayer if an election by the taxpayer or his spouse under subsection (a) with respect to any other sale or exchange is in effect. “(3) Additional election if prior sale was made on or before july 26, 1978.— In the case of any sale or exchange after July 26, 1978, this section shall be applied by not taking into account any election made with respect to a sale or exchange on or before such date.”

7. 1978

   Pub. L. 95–600 § 404(c)(1) · 92 Stat. 2763

   Substituted · 26 U.S.C. § 121(d)(2)

   Pub. L. 95–600, § 404(c)(1), substituted “5-year period” for “8-year period”

   Source evidence

   Code amendment note
   Subsec. (d)(2). Pub. L. 95–600, § 404(c)(1), substituted “5-year period” for “8-year period”.

   Enacted provision · exact public law section
   (1) 26 USC 121. Paragraph (2) of section 121(d) is amended by striking out “8-year period” and inserting in lieu thereof “5-year period”.

8. 1978

   Pub. L. 95–600 § 404(c)(2) · 92 Stat. 2763

   1. Substituted · 26 U.S.C. § 121(d)(5)

      Pub. L. 95–600, § 404(c)(2), substituted “5-year period” for “8-year period”

   2. Substituted · 26 U.S.C. § 121(d)(5)

      Pub. L. 95–600, § 404(c)(2), substituted “3 years” for “5 years”

   Source evidence

   Code amendment note
   Subsec. (d)(5). Pub. L. 95–600, § 404(c)(2), substituted “5-year period” for “8-year period” and “3 years” for “5 years”.

   Enacted provision · exact public law section
   (2) Paragraph (5) of section 121(d) is amended— (A) by striking out “8-year period” and inserting in lieu thereof “5-year period”, and (B) by striking out “5 years” and inserting in lieu thereof “3 years”.

9. 1978

   Pub. L. 95–600 § 404(b) · 92 Stat. 2763

   Added · 26 U.S.C. § 121(d)(8)

   Pub. L. 95–600, § 404(b), added par. (8)

   Source evidence

   Code amendment note
   Subsec. (d)(8). Pub. L. 95–600, § 404(b), added par. (8).

   Enacted provision · exact public law section
   (b) Tacking of Holding Period in Case of Involuntary Conversions.— Subsection (d) of section 121 (relating to special rules) is amended by adding at the end thereof the following new paragraph: “(8) Property acquired after involuntary conversion.— If the basis of the property sold or exchanged is determined (in whole or in part) under subsection (b) of section 1033 (relating to 26 USC 1033. basis of property acquired through involuntary conversion), then the holding and use by the taxpayer of the converted property shall be treated as holding and use by the taxpayer of the property sold or exchanged.”

10. 1981

    Economic Recovery Tax Act of 1981

    Pub. L. 97–34 title I § 123(a) · 95 Stat. 175

    Substituted · 26 U.S.C. § 121(b)(1)

    Pub. L. 97–34 substituted “$125,000 ($62,500” for “$100,000 ($50,000”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 97–34 substituted “$125,000 ($62,500” for “$100,000 ($50,000”.

    Enacted provision · exact public law section
    (a) In General.— Paragraph (1) of section 121(b) (relating to one-time 26 USC 121. exclusion of gain from sale of principal residence by individual who has attained age 55) is amended by striking out “$100,000 ($50,000” and inserting in lieu thereof “$125,000 ($62,500”.

11. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 title VI § 6011(a) · 102 Stat. 3342

    Added · 26 U.S.C. § 121(d)(9)

    Pub. L. 100–647 added par. (9)

    Source evidence

    Code amendment note
    Subsec. (d)(9). Pub. L. 100–647 added par. (9).

    Enacted provision · exact public law section
    (a) In General.— Subsection (d) of section 121 of the Internal Revenue Code of 1986 (relating to one-time exclusion of gain from sale of principal residence by individual who has attained age 55) is amended by adding at the end thereof the following new paragraph: “(9) Determination of use during periods of out-of-residence care.— In the case of a taxpayer who— “(A) becomes physically or mentally incapable of self-care, and “(B) owns property and uses such property as the taxpayer’s principal residence during the 5-year period described in subsection (a)(2) for periods aggregating at least 1 year, then the taxpayer shall be treated as using such property as the taxpayer’s principal residence during any time during such 5-year period in which the taxpayer owns the property and resides in any facility (including a nursing home) licensed by a State or political subdivision to care for an individual in the taxpayer’s condition.”

12. 1997

    Pub. L. 105–34 title III § 312(a) · 111 Stat. 788

    Amended · 26 U.S.C. § 121

    Pub. L. 105–34 amended section catchline and text generally. Prior to amendment, section related to one-time exclusion of gain from sale of principal residence by individual who had attained age 55

    Source evidence

    Code amendment note
    Pub. L. 105–34 amended section catchline and text generally. Prior to amendment, section related to one-time exclusion of gain from sale of principal residence by individual who had attained age 55.

    Enacted provision · exact public law section
    (a) In General.— Section 121 (relating to one-time exclusion of gain from sale of principal residence by individual who has attained age 55) is amended to read as follows: “SEC. 121. EXCLUSION OF GAIN FROM SALE OF PRINCIPAL RESIDENCE. “(a) Exclusion.— Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more. “(b) Limitations.— “(1) In general.— The amount of gain excluded from gross income under subsection (a) with respect to any sale or exchange shall not exceed $250,000. “(2) $500,000 limitation for certain joint returns.— Paragraph (1) shall be applied by substituting ‘$500,000’ for ‘$250,000’ if— “(A) a husband and wife make a joint return for the taxable year of the sale or exchange of the property, “(B) either spouse meets the ownership requirements of subsection (a) with respect to such property, “(C) both spouses meet the use requirements of subsection (a) with respect to such property, and “(D) neither spouse is ineligible for the benefits of subsection (a) with respect to such property by reason of paragraph (3). “(3) Application to only 1 sale or exchange every 2 years.— “(A) In general.— Subsection (a) shall not apply to any sale or exchange by the taxpayer if, during the 2-year period ending on the date of such sale or exchange, there was any other sale or exchange by the taxpayer to which subsection (a) applied. “(B) Pre-may 7, 1997, sales not taken into account.— Subparagraph (A) shall be applied without regard to any sale or exchange before May 7, 1997. “(c) Exclusion for Taxpayers Failing to Meet Certain Requirements.— “(1) In general.— In the case of a sale or exchange to which this subsection applies, the ownership and use requirements of subsection (a) shall not apply and subsection (b)(3) shall not apply; but the amount of gain excluded from gross income under subsection (a) with respect to such sale or exchange shall not exceed— “(A) the amount which bears the same ratio to the amount which would be so excluded under this section if such requirements had been met, as “(B) the shorter of— “(i) the aggregate periods, dining the 5-year period ending on the date of such sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence, or “(ii) the period after the date of the most recent prior sale or exchange by the taxpayer to which subsection (a) applied and before the date of such sale or exchange, bears to 2 years. “(2) Sales and exchanges to which subsection applies.— This subsection shall apply to any sale or exchange if— “(A) subsection (a) would not (but for this subsection) apply to such sale or exchange by reason of— “(i) a failure to meet the ownership and use requirements of subsection (a), or “(ii) subsection (b)(3), and “(B) such sale or exchange is by reason of a change in place of employment, health, or, to the extent provided in regulations, unforeseen circumstances. “(d) Special Rules.— “(1) Joint returns.— If a husband and wife make a joint return for the taxable year of the sale or exchange of the property, subsections (a) and (c) shall apply if either spouse meets the ownership and use requirements of subsection (a) with respect to such property. “(2) Property of deceased spouse.— For purposes of this section, in the case of an unmarried individual whose spouse is deceased on the date of the sale or exchange of property, the period such unmarried individual owned and used such property shall include the period such deceased spouse owned and used such property before death. “(3) Property owned by spouse or former spouse.— For purposes of this section— “(A) Property transferred to individual from spouse or former spouse.— In the case of an individual holding property transferred to such individual in a transaction described in section 1041(a), the period such individual owns such property shall include the period the transferor owned the property. “(B) Property used by former spouse pursuant to divorce decree, etc.— Solely for purposes of this section, an individual shall be treated as using property as such individual’s principal residence during any period of ownership while such individual’s spouse or former spouse is granted use of the property under a divorce or separation instrument (as defined m section 71(b)(2)). “(4) Tenant-stockholder in cooperative housing corporation.— For purposes of this section, if the taxpayer holds stock as a tenant-stockholder (as defined in section 216) in a cooperative housing corporation (as defined in such section), then— “(A) the holding requirements of subsection (a) shall be applied to the holding of such stock, and “(B) the use requirements of subsection (a) shall be applied to the house or apartment which the taxpayer was entitled to occupy as such stockholder. “(5) Involuntary conversions.— “(A) In general.— For purposes of this section, the destruction, theft, seizure, requisition, or condemnation of property shall be treated as the sale of such property. “(B) Application of section 1033.— In applying section 1033 (relating to involuntary conversions), the amount realized from the sale or exchange of property shall be treated as being the amount determined without regard to this section, reduced by the amount of gain not included in gross income pursuant to this section. “(C) Property acquired after involuntary conversion.— If the basis of the property sold or exchanged is determined (in whole or in part) under section 1033(b) (relating to basis of property acquired through involuntary conversion), then the holding and use by the taxpayer of the converted property shall be treated as holding and use by the taxpayer of the property sold or exchanged. “(6) Recognition of gain attributable to depreciation.— Subsection (a) shall not apply to so much of the gain from the sale of any property as does not exceed the portion of the depreciation adjustments (as defined in section 1250(b)(3)) attributable to periods after May 6, 1997, in respect of such property. “(7) Determination of use during periods of out-of-residence care.—In the case of a taxpayer who— “(A) becomes physically or mentally incapable of selfcare, and “(B) owns property and uses such property as the taxpayer’s principal residence during the 5-year period described in subsection (a) for periods aggregating at least 1 year, then the taxpayer shall be treated as using such property as the taxpayer’s principal residence during any time during such 5-year period in which the taxpayer owns the property and resides in any facility (including a nursing home) licensed by a State or political subdivision to care for an individual in the taxpayer’s condition. “(8) Sales of remainder interests.— For purposes of this section— “(A) In general.— At the election of the taxpayer, this section shall not fail to apply to the sale or exchange of an interest in a principal residence by reason of such interest being a remainder interest in such residence, but this section shall not apply to any other interest in such residence which is sold or exchanged separately. “(B) Exception for sales to related parties.— Subparagraph (A) shall not apply to any sale to, or exchange with, any person who bears a relationship to the taxpayer which is described in section 267(b) or 707(b). “(e) Denial of Exclusion for Expatriates.— This section shall not apply to any sale or exchange by an individual if the treatment provided by section 877(a)(1) applies to such individual. “(f) Election To Have Section Not Apply.— This section shall not apply to any sale or exchange with respect to which the taxpayer elects not to have this section apply. “(g) Residences Acquired in Rollovers Under Section 1034.— For purposes of this section, in the case of property the acquisition of which by the taxpayer resulted under section 1034 (as in effect on the day before the date of the enactment of this section) in the nonrecognition of any part of the gain realized on the sale or exchange of another residence, in determining the period for which the taxpayer has owned and used such property as the taxpayer’s principal residence, there shall be included the aggregate periods for which such other residence (and each prior residence taken into account under section 1223(7) in determining the holding period of such property) had been so owned and used.”.

13. 1998

    Internal Revenue Service Restructuring and Reform Act of 1998

    Pub. L. 105–206 § 6005(e)(1) · 112 Stat. 685

    1. Substituted · 26 U.S.C. § 121(b)(2)

       Pub. L. 105–206, § 6005(e)(1), substituted “Special rules for joint returns” for “$500,000 limitation for certain joint returns” in heading

    2. Substituted · 26 U.S.C. § 121(b)(2)

       Pub. L. 105–206, § 6005(e)(1), amended text generally. Prior to amendment, text read as follows: “Paragraph (1) shall be applied by substituting ‘$500,000’ for ‘$250,000’ if—

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 105–206, § 6005(e)(1), substituted “Special rules for joint returns” for “$500,000 limitation for certain joint returns” in heading and amended text generally. Prior to amendment, text read as follows: “Paragraph (1) shall be applied by substituting ‘$500,000’ for ‘$250,000’ if—

    “(A) a husband and wife make a joint return for the taxable year of the sale or exchange of the property, “(B) either spouse meets the ownership requirements of subsection (a) with respect to such property, “(C) both spouses meet the use requirements of subsection (a) with respect to such property, and “(D) neither spouse is ineligible for the benefits of subsection (a) with respect to such property by reason of paragraph (3).”

    Enacted provision · exact public law section
    (1) Paragraph (2) of section 121(b) of the 1986 Code is amended to read as follows: “(2) Special rules for joint returns.— In the case of a husband and wife who make a joint return for the taxable year of the sale or exchange of the property— “(A) $500,000 Limitation for certain joint returns.— Paragraph (1) shall be applied by substituting ‘$500,000’ for ‘$250,000’ if— “(i) either spouse meets the ownership requirements of subsection (a) with respect to such property; “(ii) both spouses meet the use requirements of subsection (a) with respect to such property; and “(iii) neither spouse is ineligible for the benefits of subsection (a) with respect to such property by reason of paragraph (3). “(B) Other joint returns.— If such spouses do not meet the requirements of subparagraph (A), the limitation under paragraph (1) shall be the sum of the limitations under paragraph (1) to which each spouse would be entitled if such spouses had not been married. For purposes of the preceding sentence, each spouse shall be treated as owning the property during the period that either spouse owned the property.”.

14. 1998

    Internal Revenue Service Restructuring and Reform Act of 1998

    Pub. L. 105–206 § 6005(e)(2) · 112 Stat. 685

    Amended · 26 U.S.C. § 121(c)(1)

    Pub. L. 105–206, § 6005(e)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “In the case of a sale or exchange to which this subsection applies, the ownership and use requirements of subsection (a) shall not apply and subsection (b)(3) shall not apply; but the amount of gain excluded from gross income under subsection (a) with respect to such sale or exchange shall not exceed—

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 105–206, § 6005(e)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “In the case of a sale or exchange to which this subsection applies, the ownership and use requirements of subsection (a) shall not apply and subsection (b)(3) shall not apply; but the amount of gain excluded from gross income under subsection (a) with respect to such sale or exchange shall not exceed—

    “(A) the amount which bears the same ratio to the amount which would be so excluded under this section if such requirements had been met, as “(B) the shorter of— “(i) the aggregate periods, during the 5-year period ending on the date of such sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence, or “(ii) the period after the date of the most recent prior sale or exchange by the taxpayer to which subsection (a) applied and before the date of such sale or exchange, bears to 2 years.”

    Enacted provision · exact public law section
    (2) Section 121(c)(1) of the 1986 Code is amended to read as follows: “(1) In general.— In the case of a sale or exchange to which this subsection applies, the ownership and use requirements of subsection (a), and subsection (b)(3), shall not apply; but the dollar limitation under paragraph (1) or (2) of subsection (b), whichever is applicable, shall be equal to— “(A) the amount which bears the same ratio to such limitation (determined without regard to this paragraph) as “(B) (i) the shorter of— “(I) the aggregate periods, during the 5-year period ending on the date of such sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence; or “(II) the period after the date of the most recent prior sale or exchange by the taxpayer to which subsection (a) applied and before the date of such sale or exchange, bears to “(ii) 2 years.”.

15. 2001

    Pub. L. 107–16 § 542(c) · 115 Stat. 38

    Added · 26 U.S.C. § 121(d)(9)

    Pub. L. 107–16, § 542(c), added par. (9). See Codification notes above and Effective Date of 2001 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (d)(9). Pub. L. 107–16, § 542(c), added par. (9). See Codification notes above and Effective Date of 2001 Amendment note below.

    Enacted provision · exact public law section
    (c) Exclusion of Gain on Sale of Principal Residence Made Available to Heir of Decedent in Certain Cases.— Subsection 26 USC 121. (d) of section 121 (relating to exclusion of gain from sale of principal residence) is amended by adding at the end the following new paragraph: “(9) Property acquired from a decedent.— The exclusion under this section shall apply to property sold by— “(A) the estate of a decedent, “(B) any individual who acquired such property from the decedent (within the meaning of section 1022), and “(C) a trust which, immediately before the death of the decedent, was a qualified revocable trust (as defined in section 645(b)(1)) established by the decedent, determined by taking into account the ownership and use by the decedent.”.

16. 2003

    Military Family Tax Relief Act of 2003

    Pub. L. 108–121 title I § 101(a) · 117 Stat. 1335

    1. Added · 26 U.S.C. § 121(d)(9); 26 U.S.C. § 121(d)(10)

       Pub. L. 108–121 added par. (9)

    2. Redesignated · 26 U.S.C. § 121(d)(9); 26 U.S.C. § 121(d)(10)

       Pub. L. 108–121 redesignated former par. (9), as added by Pub. L. 107–16, as (10). See Codification notes above and 2001 Amendment note and Effective Date of 2001 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (d)(9), (10). Pub. L. 108–121 added par. (9) and redesignated former par. (9), as added by Pub. L. 107–16, as (10). See Codification notes above and 2001 Amendment note and Effective Date of 2001 Amendment note below.

    Enacted provision · exact public law section
    (a) In General.— Subsection (d) 26 USC 121. of section 121 (relating to exclusion of gain from sale of principal residence) is amended by redesignating paragraph (9) as paragraph (10) and by inserting after paragraph (8) the following new paragraph: “(9) Members of uniformed services and foreign service.— “(A) In general.— At the election of an individual with respect to a property, the running of the 5-year period described in subsections (a) and (c)(1)(B) and paragraph (7) of this subsection with respect to such property shall be suspended during any period that such individual or such individual’s spouse is serving on qualified official extended duty as a member of the uniformed services or of the Foreign Service of the United States. “(B) Maximum period of suspension.— The 5-year period described in subsection (a) shall not be extended more than 10 years by reason of subparagraph (A). “(C) Qualified official extended duty.— For purposes of this paragraph— “(i) In general.— The term ‘qualified official extended duty’ means any extended duty while serving at a duty station which is at least 50 miles from such property or while residing under Government orders in Government quarters. “(ii) Uniformed services.— The term ‘uniformed services’ has the meaning given such term by section 101(a)(5) of title 10, United States Code, as in effect on the date of the enactment of this paragraph. “(iii) Foreign service of the united states.— The term ‘member of the Foreign Service of the United States’ has the meaning given the term ‘member of the Service’ by paragraph (1), (2), (3), (4), or (5) of section 103 of the Foreign Service Act of 1980, as in effect on the date of the enactment of this paragraph. “(iv) Extended duty.— The term ‘extended duty’ means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period. “(D) Special rules relating to election.— “(i) Election limited to 1 property at a time.— An election under subparagraph (A) with respect to any property may not be made if such an election is in effect with respect to any other property. “(ii) Revocation of election.— An election under subparagraph (A) may be revoked at any time.” .

17. 2004

    Pub. L. 108–357 title VIII § 840(a) · 118 Stat. 1418

    Added · 26 U.S.C. § 121(d)(10)

    Pub. L. 108–357 added par. (10) relating to property acquired in like-kind exchange

    Source evidence

    Code amendment note
    Subsec. (d)(10). Pub. L. 108–357 added par. (10) relating to property acquired in like-kind exchange.

    Enacted provision · exact public law section
    (a) In General.— Section 121(d) (relating to special rules for exclusion of gain from sale of principal residence) is amended by adding at the end the following new paragraph: “(10) Property acquired in like-kind exchange.— If a taxpayer acquired property in an exchange to which section 1031 applied, subsection (a) shall not apply to the sale or exchange of such property if it occurs during the 5-year period beginning with the date of the acquisition of such property.” .

18. 2005

    Tax Technical Corrections Act of 2005

    Pub. L. 109–135 § 403(ee)(2) · 119 Stat. 2577

    Amended · 26 U.S.C. § 121(d)(10)

    Pub. L. 109–135, § 403(ee)(2), amended heading and text of par. (10) relating to property acquired in like-kind exchange generally. Prior to amendment, text read as follows: “If a taxpayer acquired property in an exchange to which section 1031 applied, subsection (a) shall not apply to the sale or exchange of such property if it occurs during the 5-year period beginning with the date of the acquisition of such property.”

    Source evidence

    Code amendment note
    Subsec. (d)(10). Pub. L. 109–135, § 403(ee)(2), amended heading and text of par. (10) relating to property acquired in like-kind exchange generally. Prior to amendment, text read as follows: “If a taxpayer acquired property in an exchange to which section 1031 applied, subsection (a) shall not apply to the sale or exchange of such property if it occurs during the 5-year period beginning with the date of the acquisition of such property.”

    Enacted provision · exact public law section
    (2) by amending the paragraph (10) relating to property acquired in like-kind exchange to read as follows: “(10) Property acquired in like-kind exchange.— If a taxpayer acquires property in an exchange with respect to which gain is not recognized (in whole or in part) to the taxpayer under subsection (a) or (b) of section 1031, subsection (a) shall not apply to the sale or exchange of such property by such taxpayer (or by any person whose basis in such property is determined, in whole or in part, by reference to the basis in the hands of such taxpayer) during the 5-year period beginning with the date of such acquisition.” .

19. 2005

    Tax Technical Corrections Act of 2005

    Pub. L. 109–135 § 403(ee)(1) · 119 Stat. 2577

    Redesignated · 26 U.S.C. § 121(d)(11)

    Pub. L. 109–135, § 403(ee)(1), redesignated par. (10), formerly par. (9), as added by Pub. L. 107–16, as (11). See Codification notes above and 2001 and 2003 Amendment notes and Effective Date of 2001 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (d)(11). Pub. L. 109–135, § 403(ee)(1), redesignated par. (10), formerly par. (9), as added by Pub. L. 107–16, as (11). See Codification notes above and 2001 and 2003 Amendment notes and Effective Date of 2001 Amendment note below.

    Enacted provision · exact public law section
    (1) by redesignating the paragraph (10) relating to property acquired from a decedent as paragraph (11) and by moving such paragraph to the end of such subsection, and

20. 2005

    Tax Technical Corrections Act of 2005

    Pub. L. 109–135 § 402(a)(3) · 119 Stat. 2577

    Substituted · 26 U.S.C. § 121(g)

    Pub. L. 109–135, § 402(a)(3), substituted “section 1223(6)” for “section 1223(7)”

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 109–135, § 402(a)(3), substituted “section 1223(6)” for “section 1223(7)”.

    Enacted provision · exact public law section
    (3) Section 121(g) is amended by striking “1223(7)” and inserting “1223(6)”.

21. 2006

    Tax Relief and Health Care Act of 2006

    Pub. L. 109–432 § 417(d) · 120 Stat. 2922

    Substituted · 26 U.S.C. § 121(d)(9)

    Pub. L. 109–432, § 417(d), substituted “Uniformed services, Foreign Service, and intelligence community” for “Members of uniformed services and Foreign Service” in heading

    Source evidence

    Code amendment note
    Subsec. (d)(9). Pub. L. 109–432, § 417(d), substituted “Uniformed services, Foreign Service, and intelligence community” for “Members of uniformed services and Foreign Service” in heading.

    Enacted provision · exact public law section
    (d) Conforming Amendment.— The heading for section 121(d)(9) is amended to read as follows: “Uniformed services, foreign service, and intelligence community”.

22. 2006

    Tax Relief and Health Care Act of 2006

    Pub. L. 109–432 § 417(a) · 120 Stat. 2922

    Substituted · 26 U.S.C. § 121(d)(9)(A)

    Pub. L. 109–432, § 417(a), substituted “duty—

    Source evidence

    Code amendment note
    Subsec. (d)(9)(A). Pub. L. 109–432, § 417(a), substituted “duty—

    “(i) as a member of the uniformed services, “(ii) as a member of the Foreign Service of the United States, or “(iii) as an employee of the intelligence community.” for “duty as a member of the uniformed services or of the Foreign Service of the United States.”

    Enacted provision · exact public law section
    (a) In General.— Subparagraph (A) of section 121(d)(9) (relating to exclusion of gain from sale of principal residence) is amended by striking “duty” and all that follows and inserting the following: “duty— “(i) as a member of the uniformed services, “(ii) as a member of the Foreign Service of the United States, or “(iii) as an employee of the intelligence community.” .

23. 2006

    Tax Relief and Health Care Act of 2006

    Pub. L. 109–432 § 417(b) · 120 Stat. 2922

    1. Added · 26 U.S.C. § 121(d)(9)(C)(iv); 26 U.S.C. § 121(d)(9)(C)(v)

       Pub. L. 109–432, § 417(b), added cl. (iv)

    2. Redesignated · 26 U.S.C. § 121(d)(9)(C)(iv); 26 U.S.C. § 121(d)(9)(C)(v)

       Pub. L. 109–432, § 417(b), redesignated former cl. (iv) as (v)

    Source evidence

    Code amendment note
    Subsec. (d)(9)(C)(iv), (v). Pub. L. 109–432, § 417(b), added cl. (iv) and redesignated former cl. (iv) as (v).

    Enacted provision · exact public law section
    (b) Employee of Intelligence Community Defined.— Subparagraph (C) of section 121(d)(9) is amended by redesignating clause (iv) as clause (v) and by inserting after clause (iii) the following new clause: “(iv) Employee of intelligence community.— The term ‘employee of the intelligence community’ means an employee (as defined by section 2105 of title 5, United States Code) of— “(I) the Office of the Director of National Intelligence, “(II) the Central Intelligence Agency, “(III) the National Security Agency, “(IV) the Defense Intelligence Agency, “(V) the National Geospatial-Intelligence Agency, “(VI) the National Reconnaissance Office, “(VII) any other office within the Department of Defense for the collection of specialized national intelligence through reconnaissance programs, “(VIII) any of the intelligence elements of the Army, the Navy, the Air Force, the Marine Corps, the Federal Bureau of Investigation, the Department of Treasury, the Department of Energy, and the Coast Guard, “(IX) the Bureau of Intelligence and Research of the Department of State, or “(X) any of the elements of the Department of Homeland Security concerned with the analyses of foreign intelligence information.” .

24. 2006

    Tax Relief and Health Care Act of 2006

    Pub. L. 109–432 § 417(c) · 120 Stat. 2922

    Added · 26 U.S.C. § 121(d)(9)(C)(vi)

    Pub. L. 109–432, § 417(c), added cl. (vi)

    Source evidence

    Code amendment note
    Subsec. (d)(9)(C)(vi). Pub. L. 109–432, § 417(c), added cl. (vi).

    Enacted provision · exact public law section
    (c) Special Rule.— Subparagraph (C) of section 26 USC 121. 121(d)(9), as amended by subsection (b), is amended by adding at the end the following new clause: “(vi) Special rule relating to intelligence community.— An employee of the intelligence community shall not be treated as serving on qualified extended duty unless such duty is at a duty station located outside the United States.” .

25. 2007

    Mortgage Forgiveness Debt Relief Act of 2007

    Pub. L. 110–142 § 7(a) · 121 Stat. 1803

    Added · 26 U.S.C. § 121(b)(4)

    Pub. L. 110–142 added par. (4) relating to special rule for certain sales by surviving spouses

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 110–142 added par. (4) relating to special rule for certain sales by surviving spouses.

    Enacted provision · exact public law section
    (a) Sale Within 2 Years of Spouse’s Death.— Section 121(b) of the Internal Revenue Code of 1986 (relating to limitations) is amended by adding at the end the following new paragraph: “(4) Special rule for certain sales by surviving spouses.— In the case of a sale or exchange of property by an unmarried individual whose spouse is deceased on the date of such sale, paragraph (1) shall be applied by substituting ‘$500,000’ for ‘$250,000’ if such sale occurs not later than 2 years after the date of death of such spouse and the requirements of paragraph (2)(A) were met immediately before such date of death.” .

26. 2007

    Tax Technical Corrections Act of 2007

    Pub. L. 110–172 § 11(a)(11)(A) · 121 Stat. 2473

    Added · 26 U.S.C. § 121(d)(9)(E)

    Pub. L. 110–172 added subpar. (E)

    Source evidence

    Code amendment note
    Subsec. (d)(9)(E). Pub. L. 110–172 added subpar. (E).

    Enacted provision · exact public law section
    (A) Paragraph (9) of section 121(d) is amended by adding at the end the following new subparagraph: “(E) Termination with respect to employees of intelligence community.— Clause (iii) of subparagraph (A) shall not apply with respect to any sale or exchange after December 31, 2010.” .

27. 2008

    Heroes Earnings Assistance and Relief Tax Act of 2008

    Pub. L. 110–245 § 113(b) · 122 Stat. 1624

    Struck · 26 U.S.C. § 121(d)(9)(C)(vi)

    Pub. L. 110–245, § 113(b), struck out heading and text of cl. (vi). Text read as follows: “An employee of the intelligence community shall not be treated as serving on qualified extended duty unless such duty is at a duty station located outside the United States.”

    Source evidence

    Code amendment note
    Subsec. (d)(9)(C)(vi). Pub. L. 110–245, § 113(b), struck out heading and text of cl. (vi). Text read as follows: “An employee of the intelligence community shall not be treated as serving on qualified extended duty unless such duty is at a duty station located outside the United States.”

    Enacted provision · exact public law section
    (b) Duty Station May Be Inside United States.— Section 121(d)(9)(C) (defining qualified official extended duty) is amended by striking clause (vi).

28. 2008

    Heroes Earnings Assistance and Relief Tax Act of 2008

    Pub. L. 110–245 § 113(a) · 122 Stat. 1624

    Struck · 26 U.S.C. § 121(d)(9)(E)

    Pub. L. 110–245, § 113(a), struck out heading and text of subpar. (E). Text read as follows: “Clause (iii) of subparagraph (A) shall not apply with respect to any sale or exchange after December 31, 2010.”

    Source evidence

    Code amendment note
    Subsec. (d)(9)(E). Pub. L. 110–245, § 113(a), struck out heading and text of subpar. (E). Text read as follows: “Clause (iii) of subparagraph (A) shall not apply with respect to any sale or exchange after December 31, 2010.”

    Enacted provision · exact public law section
    (a) In General.— Paragraph (9) of section 121(d) is amended by striking subparagraph (E).

29. 2008

    Heroes Earnings Assistance and Relief Tax Act of 2008

    Pub. L. 110–245 § 110(a) · 122 Stat. 1624

    Added · 26 U.S.C. § 121(d)(12)

    Pub. L. 110–245, § 110(a), added par. (12)

    Source evidence

    Code amendment note
    Subsec. (d)(12). Pub. L. 110–245, § 110(a), added par. (12).

    Enacted provision · exact public law section
    (a) In General.— Subsection (d) of section 121 (relating to special rules) is amended by adding at the end the following new paragraph: “(12) Peace corps.— “(A) In general.— At the election of an individual with respect to a property, the running of the 5-year period described in subsections (a) and (c)(1)(B) and paragraph (7) of this subsection with respect to such property shall be suspended during any period that such individual or such individual’s spouse is serving outside the United States— “(i) on qualified official extended duty (as defined in paragraph (9)(C)) as an employee of the Peace Corps, or “(ii) as an enrolled volunteer or volunteer leader under section 5 or 6 (as the case may be) of the Peace Corps Act (22 U.S.C. 2504, 2505). “(B) Applicable rules.— For purposes of subparagraph (A), rules similar to the rules of subparagraphs (B) and (D) shall apply.” .

30. 2008

    Housing Assistance Tax Act of 2008

    Pub. L. 110–289 div. C title III § 3092(a) · 122 Stat. 2654

    Added · 26 U.S.C. § 121(b)(4)

    Pub. L. 110–289 added par. (4) relating to exclusion of gain allocated to nonqualified use

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 110–289 added par. (4) relating to exclusion of gain allocated to nonqualified use.

    Enacted provision · exact public law section
    (a) In General.— Subsection (b) of section 121 of the Internal Revenue Code of 1986 (relating to limitations) is amended by adding at the end the following new paragraph: “(4) Exclusion of gain allocated to nonqualified use.— “(A) In general.— Subsection (a) shall not apply to so much of the gain from the sale or exchange of property as is allocated to periods of nonqualified use. “(B) Gain allocated to periods of nonqualified use.— For purposes of subparagraph (A), gain shall be allocated to periods of nonqualified use based on the ratio which— “(i) the aggregate periods of nonqualified use during the period such property was owned by the taxpayer, bears to “(ii) the period such property was owned by the taxpayer. “(C) Period of nonqualified use.— For purposes of this paragraph— “(i) In general.— The term ‘period of nonqualified use’ means any period (other than the portion of any period preceding January 1, 2009) during which the property is not used as the principal residence of the taxpayer or the taxpayer’s spouse or former spouse. “(ii) Exceptions.— The term ‘period of nonqualified use’ does not include— “(I) any portion of the 5-year period described in subsection (a) which is after the last date that such property is used as the principal residence of the taxpayer or the taxpayer’s spouse, “(II) any period (not to exceed an aggregate period of 10 years) during which the taxpayer or the taxpayer’s spouse is serving on qualified official extended duty (as defined in subsection (d)(9)(C)) described in clause (i), (ii), or (iii) of subsection (d)(9)(A), and “(III) any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the Secretary. “(D) Coordination with recognition of gain attributable to depreciation.— For purposes of this paragraph— “(i) subparagraph (A) shall be applied after the application of subsection (d)(6), and “(ii) subparagraph (B) shall be applied without regard to any gain to which subsection (d)(6) applies.” .

31. 2010

    Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

    Pub. L. 111–312 title III § 301(a) · 124 Stat. 3296

    Added · 26 U.S.C. § 121(d)(11)

    Pub. L. 111–312 amended subsec. (d) to read as if amendment by Pub. L. 107–16, § 542(c), which originally added par. (9), had never been enacted. See Codification notes above and 2001 Amendment note and Effective Date of 2010 Amendment note below. Prior to amendment, par. (11) read as follows: “Property acquired from a decedent.—The exclusion under this section shall apply to property sold by—

    Source evidence

    Code amendment note
    Subsec. (d)(11). Pub. L. 111–312 amended subsec. (d) to read as if amendment by Pub. L. 107–16, § 542(c), which originally added par. (9), had never been enacted. See Codification notes above and 2001 Amendment note and Effective Date of 2010 Amendment note below. Prior to amendment, par. (11) read as follows: “Property acquired from a decedent.—The exclusion under this section shall apply to property sold by—

    “(A) the estate of a decedent, “(B) any individual who acquired such property from the decedent (within the meaning of section 1022), and “(C) a trust which, immediately before the death of the decedent, was a qualified revocable trust (as defined in section 645(b)(1)) established by the decedent, determined by taking into account the ownership and use by the decedent.”

    Enacted provision · exact public law section
    (a) In General.— Each provision of law amended by subtitle A or E of title V of the Economic Growth and Tax Relief Reconciliation Act of 2001 26 USC 121, 684, 1014, 1022, 1040, 1221, 1246, 1291, 1296, 2210, 2664, 6018, 6019, 6075, 6716, 7701. is amended to read as such provision would read if such subtitle had never been enacted.

32. 2014

    Tax Technical Corrections Act of 2014

    Pub. L. 113–295 § 221(a)(20) · 128 Stat. 4010

    Struck · 26 U.S.C. § 121(b)(3)

    Pub. L. 113–295, § 221(a)(20), struck out subpar. (A) designation and heading and subpar. (B) and realigned margins. Prior to amendment, text of subpar. (B) read as follows: “Subparagraph (A) shall be applied without regard to any sale or exchange before May 7, 1997.”

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 113–295, § 221(a)(20), struck out subpar. (A) designation and heading and subpar. (B) and realigned margins. Prior to amendment, text of subpar. (B) read as follows: “Subparagraph (A) shall be applied without regard to any sale or exchange before May 7, 1997.”

    Enacted provision · exact public law section
    (20) Principal residence.— Section 121(b)(3) is amended— (A) by striking subparagraph (B), and (B) in subparagraph (A), by striking “(A) In general.—” and moving the text 2 ems to the left.

33. 2014

    Tax Technical Corrections Act of 2014

    Pub. L. 113–295 § 212(c) · 128 Stat. 4010

    Redesignated · 26 U.S.C. § 121(b)(4); 26 U.S.C. § 121(b)(5)

    Pub. L. 113–295, § 212(c), redesignated par. (4), relating to exclusion of gain allocated to nonqualified use, as (5)

    Source evidence

    Code amendment note
    Subsec. (b)(4), (5). Pub. L. 113–295, § 212(c), redesignated par. (4), relating to exclusion of gain allocated to nonqualified use, as (5).

    Enacted provision · exact public law section
    (c) Amendment Relating to Section 3092.— Subsection (b) of section 121 is amended by redesignating the second paragraph (4) (relating to exclusion of gain allocated to nonqualified use) as paragraph (5).

34. 2014

    Tax Technical Corrections Act of 2014

    Pub. L. 113–295 § 213(c)(1) · 128 Stat. 4010

    Inserted · 26 U.S.C. § 121(d)(12)(B)

    Pub. L. 113–295, § 213(c)(1), inserted “of paragraph (9)” after “and (D)”

    Source evidence

    Code amendment note
    Subsec. (d)(12)(B). Pub. L. 113–295, § 213(c)(1), inserted “of paragraph (9)” after “and (D)”.

    Enacted provision · exact public law section
    (1) Amendment relating to section 110.— Subparagraph (B) of section 121(d)(12) is amended by inserting “of paragraph (9)” after “and (D)”.

35. 2017

    Pub. L. 115–97 § 11051(b)(3)(A)(i) · 131 Stat. 2054

    Struck · 26 U.S.C. § 121(d)(3)(B)

    Pub. L. 115–97, § 11051(b)(3)(A)(i), struck out “(as defined in section 71(b)(2))” after “divorce or separation instrument”

    Source evidence

    Code amendment note
    Subsec. (d)(3)(B). Pub. L. 115–97, § 11051(b)(3)(A)(i), struck out “(as defined in section 71(b)(2))” after “divorce or separation instrument”.

    Enacted provision · exact public law section
    (i) by striking “(as defined in section 71(b)(2))” in subparagraph (B), and

    Effective date note
    Amendment by Pub. L. 115–97 applicable to any divorce or separation instrument (as defined in former section 71(b)(2) of this title as in effect before Dec. 22, 2017) executed after Dec. 31, 2018, and to such instruments executed on or before Dec. 31, 2018, and modified after Dec. 31, 2018, if the modification expressly provides that the amendment made by section 11051 of Pub. L. 115–97 applies to such modification, see section 11051(c) of Pub. L. 115–97, set out as a note under section 61 of this title.

36. 2017

    Pub. L. 115–97 § 11051(b)(3)(A)(ii) · 131 Stat. 2054

    Added · 26 U.S.C. § 121(d)(3)(C)

    Pub. L. 115–97, § 11051(b)(3)(A)(ii), added subpar. (C)

    Source evidence

    Code amendment note
    Subsec. (d)(3)(C). Pub. L. 115–97, § 11051(b)(3)(A)(ii), added subpar. (C).

    Enacted provision · exact public law section
    (ii) by adding at the end the following new subparagraph: “(C) Divorce or separation instrument.— For purposes of this paragraph, the term ‘divorce or separation instrument’ means— “(i) a decree of divorce or separate maintenance or a written instrument incident to such a decree, “(ii) a written separation agreement, or “(iii) a decree (not described in clause (i)) requiring a spouse to make payments for the support or maintenance of the other spouse.” .

    Effective date note
    Amendment by Pub. L. 115–97 applicable to any divorce or separation instrument (as defined in former section 71(b)(2) of this title as in effect before Dec. 22, 2017) executed after Dec. 31, 2018, and to such instruments executed on or before Dec. 31, 2018, and modified after Dec. 31, 2018, if the modification expressly provides that the amendment made by section 11051 of Pub. L. 115–97 applies to such modification, see section 11051(c) of Pub. L. 115–97, set out as a note under section 61 of this title.

43 of 43 references resolved to an enrolled provision