The following article is from the LA Times, Sunday, Dec. 29, 2002. It is not on their website and only in the printed edition. The author's email address is at the end.

This was of interest to us, who had to move an elderly person from their home to a nursing home. The IRS gave us incorrect advice at that time, telling us that the property owner could not claim the homeowners' capital gains tax exemption. The reason given to us was that the owner had not lived in the residence for more than five years, after which time the property was sold.

The last paragraph of this article says that the owner can still qualify for the full capital gains exemption in the case of moving to a nursing home.

I have written to the author and will be contacting a tax specialist soon and will post any further information I get. In the meantime, I would appreciate hearing from anyone who may have been in a similar situation in the past and how it was handled by the IRS.

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The article was so long, I scanned it in 5 parts. To download the entire article, right click each GIF file and print out individually. To read without downloading, just scroll down this page as the file load.

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