15

Question 15 (1 point) Joe purchased a single-family home for $180,000 in June of 2019. He rehabbed and reconditioned the house for an additional cost of $60,000. He lived in the house during this period and did all of the work himself. In April of 2020, he sold the house for $290,000 himself and received the sales proceeds. What is the tax result of these facts to Joe? He has a realized and recognized gain of $50,000. He has a realized gain of $50,000 but he may defer all of that gain by purchasing a new property for at least $290,000. He has a realized gain of $50,000 but it is excluded