Exclusion for home still a boon to those over 55
Article Abstract:
Section 121 provides taxpayers aged over 55 an individual capital gain exclusion of up to $125,000 on the exchange or sale of a home. Qualified taxpayers must meet certain residency and ownership requirements. The principal residence requirement specifies that the taxpayer must have used the property for at least three years out of the five years prior to the date of sale. For nursing home residents, the requirement is reduced to an aggregate period of at least one year out of the five years prior to the sale. A property that is temporarily rented prior to sale can also qualify for the exclusion, however, a property that is converted to business or a rental unit cannot. The ownership requirement, on the other hand, specifies that the property must have been owned by the taxpayer for at least three out of the five years prior to the sale.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1992
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Employer-paid educational assistance exclusion reinstated
Article Abstract:
The Small Business Job Protection Act of 1996 has reinstated the employer-supported education exclusion under Section 127. According to this provision, which terminated on Dec. 31, 1994, an employee's gross income will exclude the costs incurred by an employer providing education assistance to an employee if the assistance is part of a qualified program. Sec. 127 clarifies the meaning of certain terms, such as education assistance, employee and employer. The reinstated provision includes two changes, one related to graduate education and the other to the qualification of an educational assistance program. Employers who anticipated the retroactive reinstatement of the Sec. 127 have not been penalized.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1997
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Exclusion for grants and deductions for educational expenses more restricted
Article Abstract:
Recent tax rulings have changed the exclusions for grants and educational expenses. Scholarships used at a qualified institution are not considered income. Incidental expenses such as room and board, research, and equipment are not included in the exemption. Any portion of a scholarship or grant that is considered payment for services is treated as income. Tuition reduction plans, some educational assistance, income from qualified US savings bonds, and some prizes and awards are excluded.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1989
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