Under the home sale exclusion rules, you can use part of the exclusion if you cannot meet the two-year test for owning and living in the home under certain conditions. The failure to meet the test must be the result of a change in employment, health, or unforeseen circumstances. If you fall within this safe harbor, then the exclusion is limited to the portion of the two-year period that was satisfied. The allocation is based on the exact number of days of ownership and use of the home as a principal residence.
A credit for income taxes paid to a foreign country or U.S. possession. 401(k) plan. A deferred pay plan, authorized by Section 401(k) of the Internal Revenue Code, under which a percentage of an employee’s salary is withheld and placed in a savings account or the company’s profit-sharing plan. Income accumulates on the deferred amount until withdrawn by the employee at age 59?