Live in a home 2 of 5 years, sell, exclude $250K/$500K gain, repeat — legally, indefinitely.
IRC §121 excludes $250K single / $500K MFJ of gain on the sale of a primary residence used as such for 2 of the last 5 years. The exclusion is available ONCE EVERY 2 YEARS. Strategy: buy in an appreciating market, live in it 2 years while improving, sell tax-free, roll gain into the next primary residence. In hot markets, $500K/2yrs = $250K/yr tax-free income. Partial exclusion available for job change, health, or unforeseen circumstances even before 2 years.
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Multiply the $10M §1202 exclusion across multiple trusts.
4% corporate tax + 0% capital gains for bona fide residents.
Stack the $500K primary-home exclusion on top of a 1031 deferral.
Convert Traditional to Roth during sabbaticals or business-loss years.
Capitalize property taxes and interest on undeveloped land.
Deduct now, control forever, employ heirs.
Ordinary loss (not capital loss) on failed small biz — up to $100K.
Buy leveraged real estate inside your IRA — tax-deferred or tax-free.