IRS Issues Ruling on Homesale Programs On November 30, 2005, the IRS issued Revenue Ruling 2005-74, the long awaited ruling on the taxability of home sale transactions. The ruling provides guidance on how the IRS will tax home sale benefits paid by an employer in connection with a company-sponsored relocation. The ruling discusses the taxation of three specific home sale situations: an appraised value transaction, an amended value type transaction following the 11 key elements recommended by the Employee Relocation Council (ERC) and a contingent sale transaction. The conclusions reached in the ruling are based on the facts and circumstances of each situation and apply to circumstances involving substantially similar home sale programs. Revenue Ruling 2005-74 is a breakthrough for the relocation industry and corporate home purchase program. It creates a “safe harbor” for home purchase programs following the ERC 11 key elements. Primacy will continue to monitor this issue and will provide additional relevant information as it becomes available. Click here for the Primacy position on home sale benefits based on the guidance provided in Revenue Ruling 2005-74.