Your recitation of pre-1997 tax law is wrong. There was a once-in-a-lifetime exclusion of gain up to a dollar limit only for those over age 55. The rollover of gain into a new residence that cost more than the residence sold was also available through adjustment of basis in the new house.
The change in law was to make the exclusion available without respect to age - not the rollover, the exclusion. The rules for what constitutes a "qualified residence" remained the same.
I will no longer follow this site, given the quality of this post.
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Home Sale Exclusion
Submitted by Dave on April 17, 2008 - 15:54.
Your recitation of pre-1997 tax law is wrong. There was a once-in-a-lifetime exclusion of gain up to a dollar limit only for those over age 55. The rollover of gain into a new residence that cost more than the residence sold was also available through adjustment of basis in the new house.
The change in law was to make the exclusion available without respect to age - not the rollover, the exclusion. The rules for what constitutes a "qualified residence" remained the same.
I will no longer follow this site, given the quality of this post.