Investors & landlords

AmeliesUncle · ‎March 21, 2020

I am aware that the IRS screwed up the verbiage in Publication 523 a few years ago, but the law did not change, and the law is clear about it.

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.

I think the author who revised Publication 523 was TRYING to explain one of the exceptions, but failed miserably.

(ii)ExceptionsThe 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,

law.cornell.edu/uscode/text/26/121#b_5