Edward, Age 52, Leased a House for One Year in Memphis

question 96

Essay

Edward, age 52, leased a house for one year in Memphis with an option to buy as his personal residence. At the end of the lease, he purchased the house. He lived there for an additional 26 months before his employer transferred him to Tucson. Expecting to be in Tucson for 18 to 24 months, he rented the Memphis house for 18 months with an option to extend on a month-to-month basis for an additional 6 months. At the end of the 18-month period, Edward's employer offered him a permanent position in Tucson as branch manager. The tenant who had been occupying Edward's house in Memphis purchased it at the end of the 24-month extended lease period. Is Edward eligible to elect exclusion treatment under § 121?

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Definitions:

Days

Days refer to periods of 24 hours each, marking the time it takes for the Earth to complete one rotation on its axis.

Accompanying Figure

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Regular Intervals

Occurrences or actions happening at consistent or evenly spaced periods of time.