CALIFORNIA FAMILY LAW
...Income Tax Matters
......Community Property: Assets
.........Real Property/Family Residence
............Taxability of Gain: Former Law
 16 Cards On This Topic:
  • Gain from sale of residence may be rolled over into replacement residence within 2 years of sale.
  • Rollover of gain from residence when one party has had exclusive occupancy pursuant to kickout or Duke order. Possible remedies.
  • Rollover of gain disallowed when overlapping sales and purchases occurred within statutory time period; "principal place of residence" discussed.
  • Once H left marital home with no intent to return and settlement gave W exclusive occupancy w/no immediate sale ordered, residence no longer H's principal place of residence for rollover purposes.
  • Spouse may include new spouse's share of replacement residence cost in calculating roll over pursuant to Int.Rev. Code §1034 (g).
  • H properly rolled over his 1/2 of sales proceeds from sale of former marital residence, but was still liable for tax on W's share as parties filed joint return.
  • Where co-owner prevented from selling residence by actions of occupant, s/he may still rollover after 4 years absence; good faith is a factor in determining status as principal residence under §1034.
  • House need not be principal place of residence to qualify for Int.Rev. Code §1034 deferral. May deduct depreciation and expenses while renting home prior to sale.
  • Kickout order may preclude out-spouse from rolling over his share of sales proceeds.
  • H and W may each rollover gain from own s/p residences into one jointly owned residence.
  • If jointly owned residence sold after dissolution, both spouses may qualify for Int.Rev. Code §1034 rollover.
  • Purchase of replacement residence must be completed within time period permitted by statute.
  • Taxpayer's involuntary absence from residence may preclude ability to roll over sales proceeds.
  • Taxpayer over age of 55 may exclude $125,000 gain from sale of principal residence.
  • Spouses cannot combine qualifications to meet Int.Rev. Code §121 requirements.
  • IRC §121 not available to taxpayer who turned 55 after vacating residence.


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