Hi Dawn,
I'm sorry to keep harping on this issue but it makes a huge difference in our tax bill. I understand your response completely and it would result in a very small tax bill.
Please see the attached article. It doesn't say anything about limiting the non qualified use percentage calculation to only the 5 years prior to date of sale. It actually includes an example of someone using a place for 8 years. First 5 were for business and last 3 it was used for personal residence. The author states that 5/8's of the gain is considered non qualified for the capital gain exclusion.
Please take a look at this article and let me know what you think. Thanks so much.
Intuit wont let me paste the link to the article but it is entitled
How the Loophole in IRC Section 121 Can Benefit Homeowners
and is on the cpajournal.com website.
Thanks.
