Tracy Lee Posted March 11, 2023 Report Share Posted March 11, 2023 TP has finally gotten a significant settlement for the principal home that was destroyed in the California Paradise fire. They were told they could write off the $220,000.00 (gross) they received against the Sale of Principal Residence because they lived in it for over their 2 years, it was their only home and it burned to the ground. They did receive insurance money in full for replacement, moved, and are building a new home in Oregon. All I can find is that the house that burned down becomes apart of their basis (money & time) for the new home and there is no exclusion allowed. Does anyone have any experience or wisdom for me on this? Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 12, 2023 Report Share Posted March 12, 2023 Pub 547 has your answers Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted March 14, 2023 Report Share Posted March 14, 2023 On 3/11/2023 at 3:59 PM, Tracy Lee said: a significant settlement for the principal home that was destroyed in the California Paradise fire. See section 121(d)(5) for details. Quote Link to comment Share on other sites More sharing options...
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