Understanding the Common §121 “Gotchas” When people sell their home, there’s often an assumption that the gain is automatically tax-free. In many cases, that’s true. But once you start layering in real-life situations like moving, renting, or working from home, the rules become more nuanced. There are a few key areas that tend to come into play: The basic home sale exclusion rules under IRC §121 Periods where the home was not used as a primary residence Renting part or all of

From time to time, we hear a version of the same question: “Should I put my rental properties into an S Corporation to save on taxes?” We appreciate clients asking the question (especially before doing it!). S Corporations are often associated with tax efficiency, particularly when it comes to reducing self-employment taxes. For business owners who generate active income, that association can be valid. The issue is that rental real estate does not operate under the same rules