Selling a Home You Bought Before May 1997?
Did you sell your home you acquired before May 1997?
Watch out, your gain may be higher than expected.
Before May 6, 1997, homeowners had a rollover provision to exclude gain when selling and buying a home of equal or greater value within a two year period. Any taxpayer who took the rollover provision would have a reduced basis.
This reduced basis applies when the property is sold today.
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