Ark. Code R. 26-51-404 - 1(b)(2) (1997) - Gain on Sale or Exchange of Principal Residence

Gross income shall not include the gain resulting from the sale or exchange of real estate located within Arkansas whenall of the following conditions are met:

(a) the real estate sold or exchanged by the taxpayer was the taxpayer's principal residence;

b) the taxpayer uses the *gain within a four (4) year period, beginning two (2) years prior to the date of sale or exchange and ending two (2) years after that date, to purchase, build or restore a new parcel of real estate;

c) the new parcel of real estate is located within Arkansas; and

d) the new parcel of real estate is used or will be used by the taxpayer as his principal place of residence.

*This exclusion from gross income shall only apply to that portion of the "gain" actually used to purchase, build or restore the new parcel of real estate.

Gain shall be computed as set forth in ACA26-51-411(d).