Joey bought his home in 2012 for $250,000, and used it as his principal residence until he sold it in 2018 for $140,000. What recognized gain or loss does Joey include in his 2018 taxable income?

a. $110,000 recognized loss.

b. Neither gain nor loss.

c. $110,000 recognized gain.

d. $140,000 recognized gain.

11. Fred and Ethel file a joint return for 2018. Fred bought his home in 2014 for $300,000 and has used it as his principal residence ever since. Ethel moved into Freds home when they married in January, 2017. Fred sold the home September 30, 2018 for $775,000. What is the least recognized gain Fred and Ethel can report on their joint return for 2018?

a. $0.

b. $225,000.

c. $475,000.

d. $775,000.

12. Mickey and Minnie file a joint return for 2018. Mickey bought his home in 2014 for $300,000 and has used it as his principal residence ever since. Minnie moved into Mickeys home when they married in January, 2016. Mickey sold the home September 30, 2018 for $775,000. What is the least recognized gain Mickey and Minnie can report on their joint return for 2018

a. $0.

b. $225,000.

c. $475,000.

d. $775,000.