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IRC Section 121
A provision in the Internal Revenue Code that allows for the exclusion of up to $250,000 ($500,000 for married couples filing jointly) of capital gains from the sale of a primary residence.
Principal Residence
The primary location that a person inhabits. It often qualifies for specific tax benefits, such as the exclusion of gain from its sale.
Installment Method
A tax method that allows income from sales to be reported for tax purposes when the payment is received, rather than at the point of sale.
Established Securities Market
A recognized exchange or market where securities, stocks, bonds, and other financial instruments are traded among investors.
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