26 CFR 1.1398-3 - Treatment of section 121 exclusion in individuals' title 11 cases.
(a)Scope. This section applies to cases under chapter 7 or chapter 11 of title 11 of the United States Code, but only if the debtor is an individual.
(b)Definition and rules of general application. For purposes of this section, section 121 exclusion means the exclusion of gain from the sale or exchange of a debtor's principal residence available under section 121.