1(a)

Mary and Pete have lived in a home from 1973 to 2020. They purchased the home for $180,000 and sold it for $560,000. Assume the couple has not used a section 121 exclusion before. How much will their AGI increase from selling the house?

		$0
		$560,000
		$60,000
		$380,000
		$130,000

1(b)

Ross and Rachel purchased a home in 2019. Sadly Rachel divorced Ross leaving Ross with the house. He can't really afford the house alone so he sells it in 2020 for $600,000. The house was Ross's primary residence for 292 days over the past 2 years. The basis is $325,000. Assume no prior 121 exclusion has been used. How much will Ross's AGI increase due to selling the house? Hint: use 730 days as a replacement for 24 months when calculating the exclusion.

		$600,000
		$0
		$150,000
		$175,000
		$50,000