Internal Revenue Service Strategic Plan FY 2018-2022

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The tax code recognizes the importance of home ownership by allowing you to exclude gain when you sell your main home. To qualify for the maximum exclusion of gain ($250,000 or $500,000 if married filing jointly) you must meet the Eligibility Test , explained later. To qualify for a partial exclusion of gain, meaning an exclusion of gain less than the full amount, you must meet one of the situations listed in Does Your Home Qualify for a Partial Exclusion of Gain? , later.

Before considering the Eligibility Test or whether your home qualifies for a partial exclusion, you should consider some preliminary items.

Transfer of your home to a spouse or an ex-spouse.

Generally, if you transferred your home (or share of a jointly owned home) to a spouse or ex-spouse as part of a divorce settlement, you are considered to have no gain or loss. You have nothing to report from the transfer and this entire publication doesn’t apply to you. However, there is one exception to this rule. If your spouse or ex-spouse is a nonresident alien, then you likely will have a gain or loss from the transfer and the tests in this publication apply.

Written by IRS | Posted in Exclusion Of Gain • Internal Revenue Service Strategic Plan FY 2018-2022 • Sale Of Home

Kat Jennings - A Must Read For Every Taxpayer

For anyone who has not yet read the Internal Revenue Service Strategic Plan FY 2018-2022, this is a must read for every tax professional and taxpayer this year. While the IRS Strategic Plan opens with the Taxpayer Bill of Rights, it also reminds you that the Tax Cuts And Jobs Act is the most significant revision of the U.S. Tax Code in more than 30 years.

The report states that the new law will require extensive administrative work – updates to 140 computer systems and 450+ tax forms – for the IRS in calendar years 2018 and 2019. The report also states “providing service to taxpayers is a vital part of the IRS mission, and helping taxpayers voluntarily comply with the law strengthens our tax system.”

The IRS Has Six Strategic Goals

Empower and enable all taxpayers to meet their tax obligations.
Protect the integrity of the tax system encouraging compliance through administrating and enforcing the tax code.
Collaborate with external partners proactively to improve tax administration.
Cultivate a well-equipped, diverse, flexible and engaged workforce.
Advance data access, usability and analytics to inform decision-making and improve operational outcomes.
Drive increased agility, efficiency, effectiveness and security in IRS operations.