Eva and Mario are married on June 14, 2015. They use Eva's home as their principal residence. Eva purchased the home for $97,000 in 2012. On January 13, 2016, Eva and Mario are divorced. As part of the settlement, Mario receives the home. He sells it on March 30, 2016, for $119,000.
Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify.