I have tax research and I need to include:A) queries B) conclusion C) argument and authorities

Hjalmer and his wife Freida have a home in Colorado where they spend five months a year. Six to seven months a year is spent in their second home, a beachfront bungalow on the coast of Mexico. They have split their time between these two homes for the last five years and are now considering selling the home in Mexico. The bungalow was purchased for $125,000 many years ago and has appreciated to $300,000. They wish to sell the home so that they can build a larger home in the same Mexican community. They estimate the cost of the new home would be $450,000 and would be completed in nine months to a year.