In the latest episode of Amplified Wealth: According to Plan, Tom Farrell and Kate Fishbein dive into Section 121, the powerful (but often overlooked) tax break that can exclude up to $500,000 in capital gains when selling your primary residence.
Episode Highlights:
🏡 What is Section 121?
Learn how this IRS rule helps homeowners exclude up to $250K (single) or $500K (married) in capital gains from taxes when selling a primary residence.
📋 Eligibility Rules Made Simple
Break down the ownership, residency, and lookback tests to determine whether you qualify.
🧾 Cost Basis & Capital Improvements
Discover what counts toward your adjusted basis — and why saving your receipts could save you big.
🛠️ What Doesn’t Count
From utilities to paint touch-ups, find out which common home expenses don’t help your tax situation.
💰 Above the Limit? Don’t Panic.
Even gains beyond the exclusion get favorable tax treatment — and there may still be planning opportunities available.
And much more!
Tune in now to Amplified Wealth and subscribe on all of your favorite podcast platforms (links above).
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Timestamps:
(0:00) – Cold Open / Catching Up
(2:05) – Today’s Topic: Section 121 Capital Gains Exclusion
(4:48) – What is Section 121? The Basics
(5:51) – Who Doesn’t Qualify for the Exclusion?
(9:08) – Lookback Rules: One Exclusion Every Two Years
(10:34) – What Increases Your Home’s Adjusted Basis?
(12:49) – What Doesn’t Count: Common Mistakes
(17:23) – Real-Life Example: Calculating Section 121 Exclusion
(20:14) – What Happens if Your Gain Exceeds the Exclusion Limit?
(21:18) – Case Study: Builder Using the Exclusion Strategically
(26:33) – Final Thoughts and Outro
Nothing contained in this presentation should be construed as personalized advice, or solicitation to buy or sell any securities. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. There can be no assurance that the future performance of any specific investment or non-investment related content in this Podcast will be profitable or suitable for your individual situation. Due to changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions. The opinions expressed in this podcast are those of the participants and may not reflect those of the firm. To the extent you have any questions regarding the applicability of anything discussed to your individual situation, you are encouraged to consult with the professional advisor of your choosing. The firm is neither a law firm, nor a certified public accounting firm, and no portion of this content should be construed as legal or accounting advice.
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