CCH Federal Taxation Basic Principles
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(g) = (a) x (f)
Pro rata fraction
(f) = [lesser of (b) (c) or (d)] (e)
# months since the previous sale to which the exclusion applied. (Use “24 months” if no previous sale.)
Aggregate # months of occupancy during the five year period ending on the date of sale.
Aggregate # months of ownership during the five year period ending on the date of sale.
Available exclusion (i.e., $250,000 or $500,000).
Formula forProrating the Exclusion Where Unforeseen Circumstances Apply
Sale of Home Due to Unforeseen Circumstances
Chapter 11, Exhibit 7b