26 CFR § 1.121-5 - Suspension of 5-year period for certain members of the uniformed services and Foreign Service.
---
identifier: "/us/cfr/t26/s1.121-5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 1.121-5 - Suspension of 5-year period for certain members of the uniformed services and Foreign Service."
title_number: 26
title_name: "Internal Revenue"
section_number: "1.121-5"
section_name: "Suspension of 5-year period for certain members of the uniformed services and Foreign Service."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "INCOME TAX"
part_number: "1"
part_name: "INCOME TAXES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805, unless otherwise noted."
regulatory_source: "T.D. 6500, 25 FR 11402, Nov. 26, 1960; 25 FR 14021, Dec. 21, 1960; T.D. 9989, 89 FR 17606, Mar. 11, 2024, unless otherwise noted."
cfr_part: "1"
---
# 1.121-5 Suspension of 5-year period for certain members of the uniformed services and Foreign Service.
(a) *In general.* Under section 121(d)(9), a taxpayer who is serving (or whose spouse is serving) on qualified official extended duty as a member of the uniformed services or Foreign Service of the United States may elect to suspend the running of the 5-year period of ownership and use during such service but for not more than 10 years. The election does not suspend the running of the 5-year period for any period during which the running of the 5-year period with respect to any other property of the taxpayer is suspended by an election under section 121(d)(9).
(b) *Manner of making election.* The taxpayer makes the election under section 121(d)(9) and this section by filing a return for the taxable year of the sale or exchange of the taxpayer's principal residence that does not include the gain in the taxpayer's gross income.
(c) *Application of election to closed years.* A taxpayer who would otherwise qualify under §§ 1.121-1 through 1.121-4 to exclude gain from a sale or exchange of a principal residence on or after May 7, 1997, may elect to apply section 121(d)(9) and this section for any years for which a claim for refund is barred by operation of any law or rule of law by filing an amended return before November 11, 2004.
(d) *Example.* The provisions of this section are illustrated by the following example:
(e) *Effective date.* This section is applicable for sales and exchanges on or after May 7, 1997.
[T.D. 9152, 69 FR 50306, Aug. 16, 2004]