New House, After Demolition of the Old House, Not Eligible for the $500,000 Exclusion

Abstract

<p>After 23 years of treating the gain on the “principal residence” as deferrable if a new residence was purchased for a price at least equal to the selling price on the old residence, beginning in 1951,<strong>1 </strong>and 46 years permitting an individual to exclude part or all of the gain on the “principal residence,”<strong>2 </strong>the Tax Court in 2010<strong>3 </strong>finally faced the question of the meaning of “principal residence.”<strong>4</strong></p>