1. Dawn (single) purchased her home on July 1, 2010. On July 1, 2020 Dawn moved out of the home. She rented out the home until July 1, 2021 when she sold the home and realized a $230,000 gain (assume none of the gain was attributable to depreciation). What amount of the gain is Dawn allowed to exclude from her 2021 gross income?

1. $0.
2. $23,000.
3. $207,000.
4. $230,000.

2. Ethan (single) purchased his home on July 1, 2011. He lived in the home as his principal residence until July 1, 2018, when he moved out of the home, and rented it out until July 1, 2020, when he moved back into the home. On July 1, 2021, he sold the home and realized a $210,000 gain. What amount of the gain is Ethan allowed to exclude from his gross income?

1. $0.
2. $168,000.
3. $200,000.
4. $210,000.

3. Jamison is self-employed and he works out of an office in his home. After allocating the home-related expenses between the business office and the rest of the home, which of the following statements regarding the sequence of deductibility of the expenses allocated to the home office business use is correct (Jamison does not use the simplified method for determining the home office expense deduction)?

1. Depreciation expense, other expenses, property taxes and interest expense.
2. Other expenses, depreciation expense, property taxes and interest expense.
3. Property taxes and interest expense, other expenses, depreciation expense.
4. Other expenses, property taxes and interest expense, depreciation expense.
5. None of these statements are correct.