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Deductions & credits
I think the concern is that if the taxpayer claims a partial exclusion and is denied, they will pay additional capital gains tax on around $200,000 of excluded gains (depending on exactly when they close, of course). If they wait, they may only save a small amount of tax, but they gain financial certainty. For my opinion on the safe harbors, see above.
‎February 22, 2024
5:25 PM