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b'Can adopting a child, an apparently voluntary endeavor, qualify as an unforseen circumstance for purposes of obtaining an early exclusion of gain from the sale of a home under Section 121?\\xa0 A taxpayer asked that question of the IRS and got a favorable response which we consider this week.\\xa0 The letter ruling, which applies only to this taxpayer, is useful in helping us determine where the IRS may see the boundaries of an "unforseen" circumstance that qualifies a taxpayer for early use of Section 121\'s gain exclusion at a reduced level.

We look at Letter Ruling 200613009\'s specific facts, noting that many factors were considered than just the fact the taxpayers decided to adopt a child--so the ruling does not support the conclusion that all adoptions will trigger the ability to make early use of a reduced 121 exclusion.

The materials for the podcast can be found at http://edzollars.com/2006-04-15_Adoption.pdf.

This podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com.
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