Home Sale Tax Change Applies to Foreign Service

A tax change for military personnel under a recently signed measure (P.L. 108-121) applies to foreign service members as well. Under prior policy, to qualify for exclusions from tax for profits related to the sale of a home-up to $250,000 for an individual and $500,000 for a couple-an individual had to live in the home for the five years before the sale. That policy often had the effect of leaving out military personnel as well as foreign service employees who were assigned overseas for long periods. Under the new law, the individual need only live in the home for two of the prior five years to qualify.