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Non-taxable gain on sale of a personal residence

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Why does the IRS permit a tax payer to have $250,000 of non-taxable gain from the sale of a personal residence? Explain.

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The solution determines why the IRS permits a tax payer to have $250,000 of non-taxable gain from the sale of a personal residence.

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The sale of a personal residence enjoys special tax treatment in order to minimize the impact of long-term inflation. For most people, a residence is the largest asset they own. While some appreciation is expected, residences are not primarily used as ...

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