3. In 1998, Gven and his wife Alicia purchase a home in Tribeca for $700,000. In 2016, after the neighborhood had unexpectedly gentrified, they sell it for $1 million. At all times, Gven and Alicia used the home as their primary residence. Since 2008, Gven and Alicia have been married. What is their amount realized, gain realized, and gain recognized? a. The amount realized $1 million. See I.R.C. 1001(b). The gain realized is $300,000. See I.R.C. 1001(a). The gain recognized is also $ 300,000 because no special exception applies. See I.R.C. 1001(c). b. The amount realized $1 million. See I.R.C. 1001(b). The gain depends on whether they enter into a transaction subject to I.R.C. 1031. c. The amount realized $1 million. See I.R.C. 1001(b). The gain realized is $300,000. See I.R.C. 1001(a). The gain recognized is $50,000 because gain is excluded from the sale of a taxpayer's principal residence up to a limit of $250,000. See I.R.C. 121(b)(1). d. The amount realized $1 million. See I.R.C. 1001(b). The gain realized is $300,000. See I.R.C. 1001(a). The gain recognized is $0 because gain is excluded from the sale of a taxpayer's principal residence up to a limit of $500,000. See I.R.C. 121(b)(2)