In a Letter Ruling, the IRS held that a second marriage and blended family qualify as an unforeseen circumstance for partial home sale exclusion. In the request, the two families had five children between them and the necessity arose that the family obtain a biggerd welling to accommodate all of the children. One of the spouses owned the home for less than the required two years. The IRS determined that the larger family was an unforeseen circumstance necessitating a partial exclusion.
Points of Interest
- With 8.5 million jobs having been eliminated in the past few years, returning to a normal state of unemployment will be quite challenging.
- According to the IRS website, employers who hire qualifying employees will be excused from paying that employer’s share of Old Age Survivor’s and Disability Insurance (OASDI) taxes on employees hired February 3, 2010 to December 31, 2010.
- Contained within the HIRE Act, section 179 expensing has been extended one additional year through 2010.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors