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<DIV align=left>I didn’t read this but I find Google it and you find others who
have done some research. <A
title=https://www.taxprotalk.com/forums/viewtopic.php?f=8&t=4110
href="https://www.taxprotalk.com/forums/viewtopic.php?f=8&t=4110">https://www.taxprotalk.com/forums/viewtopic.php?f=8&t=4110</A>.
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<DIV style="font-color: black"><B>From:</B> <A title=eric@appelgatereutter.com
href="mailto:eric@appelgatereutter.com">Eric Reutter</A> </DIV>
<DIV><B>Sent:</B> Thursday, April 13, 2017 4:02 PM</DIV>
<DIV><B>To:</B> <A title=wsbapt@lists.wsbarppt.com
href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</A> </DIV>
<DIV><B>Subject:</B> [WSBAPT] Section 121 exclusion question</DIV></DIV>
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<DIV dir=ltr>I have a question that involves the applicability of the IRC
Section 121 exclusion.
<DIV> </DIV>
<DIV>My question is this: Can the Section 121 exclusion be utilized even when
the legal title holders have not been residing in the home as their primary
residence? Specifically, what if the ones residing in the home have been the
parties who, for all other purposes but legal title and the loan documents, have
been acting as the homeowners? (i.e. the residents have made all the mortgage
payments, property tax payments, and upkeep on the property).</DIV>
<DIV> </DIV>
<DIV>Perhaps a simpler way of phrasing the question is this: <B><I>if, for
example, parents became the legal title holders of a home simply because their
son could not qualify for the home mortgage, but all of the mortgage, upkeep,
and tax payments have been made by the son, can either he or the parents somehow
utilize the Section 121 exclusion when the home is sold?</I></B></DIV>
<DIV> </DIV>
<DIV>There is still a mortgage on the property that likely contains a 'due on
sale' clause, so I do not believe the parents in my hypothetical could quit
claim the property to the son and therefore give him legal title before a sale
is made. I am stuck therefore, wondering if the IRS perhaps recognizes a type of
"equitable title" doctrine in the context of Section 121.</DIV>
<DIV> </DIV>
<DIV>Curious if anyone has run into a similar situation before. Feedback is
always appreciated.</DIV>
<DIV> </DIV>
<DIV>Best regards,</DIV>
<DIV><BR><BR clear=all>
<DIV>
<DIV class=gmail_signature data-smartmail="gmail_signature">
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<DIV>
<DIV dir=ltr><FONT color=#000000 face="garamond, serif"><B>Eric Reutter,
</B>Partner</FONT><FONT style="FONT-FAMILY: 'arial black',sans-serif"
color=#0b5394> </FONT></DIV>
<DIV dir=ltr><I style="FONT-FAMILY: garamond,serif"><FONT color=#000000>J.D.,
LL.M. Taxation</FONT></I></DIV>
<DIV dir=ltr>
<DIV style="FONT-SIZE: 12px"><FONT color=#000000 face="garamond, serif">14205 SE
36th Street, Suite 100</FONT></DIV>
<DIV style="FONT-SIZE: 12px"><FONT color=#000000
face="garamond, serif">Bellevue, WA 98006</FONT></DIV>
<DIV style="FONT-SIZE: 12px"><FONT color=#000000 face="garamond, serif"><B>(425)
298-7110</B> <SPAN style="FONT-SIZE: 14px">| </SPAN><B><SPAN
style="FONT-SIZE: 12px"><A href="http://appelgatereutter.com/"
target=_blank>appelgatereutter.com</A></SPAN><FONT style="FONT-SIZE: 12px"><SPAN
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<DIV dir=ltr><FONT color=#073763 face="garamond, serif"><BR></FONT></DIV>
<DIV><FONT color=#073763 face="garamond, serif"><IMG
src="https://docs.google.com/drawings/d/1_ki68D-hyjqSa4GiscGPV7pYrrbXnk4Y-J2oVpiqZnU/pub?w=1142&h=323"
width=200 height=54> <BR></FONT></DIV>
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