Home is Where the Partnership Isn't

In a recent Tax Court decision on the home sale exclusion under Section 121, the IRS and the taxpayers split the decision--the IRS lost in its attempt to claim the taxpayer did not use the property in question as his principal residence, but the taxpayer lost a portion of the deduction because a portion of the property was titled in the name of a partnership--and the court did not buy the taxpayer's theories that either the partnership was never formed or that the property had been distributed.  The case is Farah v. Commissioner, T.C. Memo 2007-369.The materials for the podcast can be downloaded from http://www.edzollars.com/2007-12-26_Section_121.pdf .The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com .