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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?

Posted
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.

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