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Peace Corp Volunteers Suspension of 5-Year Period

Much like members of the military and intelligence communities, the IRS offers special home sale exclusion rules for Peace Corps volunteers. 

As noted, Peace Corps volunteers have a rule similar to the suspension rules applicable to members of the uniformed services, Foreign Service, and intelligence community. At the election of an individual with respect to a property (i.e., the residence), the running of the five-year ownership and use period in Sec 121 is suspended during any period that the individual or the individual's spouse is serving outside the U.S on qualified official extended duty as an employee of the Peace Corps, or as an enrolled volunteer or volunteer leader under §5 or §6 of the Peace Corps Act (22 USC 2504, 22 USC 2505).   Thus, an individual may elect to suspend the five-year test period for ownership and use during certain absences due to volunteer service in the Peace Corps. (Com Rept)

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