Minor "bug" - Capital Gains on Home Sale

[JBristow3682]

We sold our house after living there 25 months...took a small loss. Walking through the "Home Sale" steps it says I'm not eligible for the exemption, but there's no gain so I'm good. That's an incorrect message. I am eligible for the exemption - but there's no gain so it's not needed. I tested this out by changing the sale amount to show a small gain - and only them did it ask me the "24 month as your primary residence" requirement questions and then told me I was eligible for the exemption - but had no gain to report. This is a rare situation I'm sure - but the message and processing logic is incorrect when it says I'm not eligible. Thanks. 

[M-MTax]

No offense intended, but WHY would you want to use your home sale exemption, an exemption that can be used only once every 2 years, when you have sold a primary residence for zero gain?

There's a method to the perceived madness here.

[JBristow3682]

Didn't say I was using it - did I? 

I know I have no gain - so no exemption is needed. However, the issue is when reporting the sale of your home, the process comes back saying you aren't eligible, when in fact your are. It's just a minor bug to report - nothing more than that. 

[M-MTax]

It's NOT a minor bug. You're NOT eligible because you have no gain. See Section 121:

Gross income shall not include gain from the sale or exchange of property if, during the 5-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as the taxpayer’s principal residence for periods aggregating 2 years or more.

[JBristow3682]

Disagree. 

[M-MTax]

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@JBristow3682 wrote:

Disagree. 

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Because of your ignorance of tax law.

[JBristow3682]

I'll agree with you on the ignorance part...just disagree with who's being ignorant. 

Let it go dude.

[M-MTax]

Your eligibility for the exclusion is based on actually having a gain. Thus, then title of the Statute:

26 U.S. Code § 121 - Exclusion of gain from sale of principal residence

[M-MTax]

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@JBristow3682 wrote:

I'll agree with you on the ignorance part...just disagree with who's being ignorant. 

Let it go dude.

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God, get an education, will you? At least try to pass 6th grade