IRC Section 121 excludes up to $250,000 in gain from the sale or exchange of a taxpayer's principal residence, assuming all the requirements are satisfied. Answer the following questions regarding this Code Section.
a. If all the requirements are met, is a taxpayer required to exclude up to $250,000 in gain?
b. A taxpayer's residence is burned down as a result of an accidental fire. Does this Code section apply?
c. A taxpayer sold his principal residence for a $250,000 gain on May 8, 20X0. He immediately purchased another principal residence, which he sold on May 6, 20X2, realizing a $100,000 gain. Assuming he satisfied all other Code Section 121 requirements, will he be able to exclude the $100,000 gain?