Eve owns three houses, which she sold last year. The first was her personal residence in which she had a basis of $100,000 and received $500,000 When she sold it. The second house was her vacation home, in which she had a basis of $$300,000 and sold for $250,000. The Third home was a rental property, with basis of $400,000, sold for $350,000. (a) To what extent are Eve's gains and losses on these transactions are taken into account in computing her taxable income? Under what provision of the Internal Revenue Code are these gains and losses recognizable? (b) Are the recognizable gains or losses subject to any additional exclusions, privileges, restrictions, or limitations? Under which provisions of the Internal Revenue Code? |