Little-Known Provision of Housing Billby Tim Manni
A little-known provision of the Housing and Economic Recovery Act of 2008 is the change to the Home Sale Tax Exclusion Rule.
From Calculated Risk:
Under the new rule, the owner only gets a percentage of the exclusion based on a ratio of how long the property is their primary residence divided by how long they owned the property. This prevents people from moving into vacation homes or rental units for two years and then obtaining the entire exclusion.