Assume instead that the Bennetts resided in a very depressed neighborhood and the home purchased in 2008 for $200,000 (capital improvements of $40,000) was sold for only $110,000. How much loss is recognized? $200,000 $130,000 $0 $90,000 None of the above.

Ben Benson, single, sold his home that he had owned for 20 years for $695,000. He purchased it for $140,000 and made $45,000 of capital improvements on the home during his time of ownership. How much gain is recognized? $510,000 $500,000 Home office expenses must be split into two categories to properly calculate the deduction: direct and Indirect expenses. $260,000 $250,000 None of the above.

If Ben in the preceding problem purchased another home for $400,000, how much gain is recognized? $510,000 $10,000 $45,000 $260,000

Calvin and Carolyn Coleman purchased a home in San Francisco for $375,000 on October 1, 2017. Calvin obtained a job in Portland, Oregon, and on December 1, 2018, the Colemans sold their home in San Francisco for $650,000. How much gain must the Colemans recognize? $500,000 $291,667 $275,000 $0 None of the above is correct.

Assume that the Colemans in the preceding problem instead sold their home on December 1, 2018, for $800,000. How much gain must the Colemans recognize? $425,000 $291,667 $0 $133,333 None of the above.