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Tax in Action: Practical Strategies for Tax Pros
Jeremy Wells, EA, CPA
14 episodes
6 days ago
Join Jeremy Wells, EA, CPA, as he breaks down the complexities of tax law into practical guidance you can apply immediately. Each episode focuses on a specific tax strategy, credit, or compliance issue that matters to tax professionals and business owners. Rather than theoretical discussions, Jeremy delivers actionable insights based on real-world scenarios and current tax regulations. Whether you're navigating Section 1031 exchanges, maximizing research credits, or helping clients with energy tax incentives, this podcast provides the technical details and strategic considerations you need to confidently serve your clients. Perfect for tax practitioners looking to deepen their expertise and business owners wanting to make more informed tax decisions.
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All content for Tax in Action: Practical Strategies for Tax Pros is the property of Jeremy Wells, EA, CPA and is served directly from their servers with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.
Join Jeremy Wells, EA, CPA, as he breaks down the complexities of tax law into practical guidance you can apply immediately. Each episode focuses on a specific tax strategy, credit, or compliance issue that matters to tax professionals and business owners. Rather than theoretical discussions, Jeremy delivers actionable insights based on real-world scenarios and current tax regulations. Whether you're navigating Section 1031 exchanges, maximizing research credits, or helping clients with energy tax incentives, this podcast provides the technical details and strategic considerations you need to confidently serve your clients. Perfect for tax practitioners looking to deepen their expertise and business owners wanting to make more informed tax decisions.
Show more...
Business
Education
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Section 121: The $500k Exclusion Explained
Tax in Action: Practical Strategies for Tax Pros
58 minutes
2 months ago
Section 121: The $500k Exclusion Explained

Jeremy breaks down the complex rules surrounding Section 121's capital gains exclusion for home sales, using the Weber v. Commissioner tax court case to illustrate how taxpayers can lose out on excluding up to $500,000 in gains. The episode covers the critical two-out-of-five year ownership and use tests, explains how rental conversions can disqualify you from the exclusion, and details the partial exclusion exceptions for employment changes, health issues, and unforeseen circumstances. Understanding these nuances is essential since home sales often represent the largest financial transactions in taxpayers' lives.

Sponsors
SafeSend - taxshow.promo/safesend


  • (00:00) - Section 121
  • (01:05) - Capital Gain Exclusion Introduction
  • (03:21) - Case Study: Webert vs Commissioner
  • (05:51) - Defining Principal Residence
  • (15:58) - Ownership and Use Tests
  • (27:43) - Understanding Spousal Eligibility for Exclusion
  • (28:51) - Principal Residence Usage Requirements
  • (30:52) - Counting Days and Periods of Absence
  • (32:36) - Special Considerations for Older Taxpayers
  • (33:57) - Ownership Through Trusts and LLCs
  • (36:57) - The Once Every Two Years Rule
  • (41:10) - Non-Qualified Use Explained
  • (47:06) - Case Study: The Webers' Tax Court Case
  • (48:12) - Partial Exclusions and Safe Harbors
  • (56:51) - Conclusion and Key Takeaways

Connect with Jeremy
https://www.linkedin.com/in/jwellstax
https://www.steadfastbookkeeping.com

Subscribe on YouTube
https://www.youtube.com/@TaxinAction

Earn CPE for Listening to This Podcast
https://www.earmark.app/

This podcast is a production of the Earmark Media

Tax in Action: Practical Strategies for Tax Pros
Join Jeremy Wells, EA, CPA, as he breaks down the complexities of tax law into practical guidance you can apply immediately. Each episode focuses on a specific tax strategy, credit, or compliance issue that matters to tax professionals and business owners. Rather than theoretical discussions, Jeremy delivers actionable insights based on real-world scenarios and current tax regulations. Whether you're navigating Section 1031 exchanges, maximizing research credits, or helping clients with energy tax incentives, this podcast provides the technical details and strategic considerations you need to confidently serve your clients. Perfect for tax practitioners looking to deepen their expertise and business owners wanting to make more informed tax decisions.