How much acreage can be included under the new sale of principal residence rules?

Academic Article


  • Prior cases and rulings indicate that taxpayers can include, in good faith, a great deal of surrounding acreage as part of their principal residence. As urbanization overtakes previously rural areas, significant amounts of low-basis land may be sold and up to $500,000 of gain excluded under Section 121, so long as the land was not being used for farming or other business ventures.
  • Authors

    Published In

    Author List

  • Daughtrey ZW; Messina FM; Harris PE
  • Start Page

  • 294
  • End Page

  • 301
  • Volume

  • 90
  • Issue

  • 5