The complexities involved in advising clients on the sale of their home can often become very challenging, but the rewards in terms of tax savings can be worth the effort. Understanding the nuances of IRC Section 121 can aid the advisor in developing the best planning strategy for each specific situation involved in selling a residence. The following overview of Section 121 along with the situational planning scenarios are intended to highlight some of the significant provisions that can be utilized by financial planners and advisors.
Author: De’Arno De’Armond, PhD, is Paul Engler Professor of Business and professor of finance at West Texas A&M University. Dr. De’Armond received a bachelor of business administration and an MBA from West Texas A&M University. After 6 years in corporate support roles, he joined academics full time and completed his PhD in personal financial planning from Texas Tech University.
Author: Darlene Pulliam, PhD, CPA, is Regents Professor and McCray Professor of Business at West Texas A&M University. Dr. Pulliam received a bachelor of science in mathematics and an MBA from Eastern New Mexico University and joined the accounting firm of Peat Marwick and Mitchell and Co. (now KPMG) in Albuquerque. After 5 years in public accounting, she completed her PhD at the University of North Texas, and has worked in academia for University of Tulsa and West Texas A&M University.
Author: David W. Clark, MPA, CPA, is instructor of accounting and healthcare management at West Texas A&M University. Mr. Clark received a BBA in accounting from West Texas State University and an MPA in accounting & finance from West Texas A&M University. Mr. Clark has held CEO and CFO positions in the health care industry, as well as being the managing partner of a regional health care consulting group.
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