Section 121(d)(11) of the Internal Revenue Code was enacted in 2001 as part of the “the Bush Tax Cuts of 2001”. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 repealed Section 121(d)(11). However, it may not be fully repealed for all tax payers. The section that repealed Section 121(d)(11) is Section 301(a), and that section allows for an election to be made by an executor of an estate of a decedent that died in 2010. So Section 121(d)(11) is not gone and forgotten just yet, and may still apply for some estates of those who died in 2010.
See Cabaelu, IRS Cautions That Section 121(d)(11) of the Internal Revenue Code is Not Wholly Repealed, Wealth Strategies Journal, July 26, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
