Non-Resident Alien Home Sale
Does a non-resident alien qualify for the Sec 121 home sale exclusion? Interesting question and not one that will be encountered often. And it seems the answer is yes if the non-resident alien otherwise meets the ownership and occupancy requirements.
Reg §1.1445-3(5) - Special rule for exclusions from income under section 121. A withholding certificate may be sought on the basis of a section 121 exclusion as a reduction in the amount of tax due under paragraph (c)(2)(v) of this section. The application must include information establishing that the transferor, who is a non-resident alien individual at the time of the sale (and is therefore subject to sections 897 and 1445) is entitled to claim the benefits of section 121. For example, a claim for reduced withholding because of section 121 must include information that the transferor occupied the U.S. real property interest as his or her personal residence for the required period.
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