John and Mary move from New York to San Diego. They use their $500,000 exclusion when they sell the New York house and they buy a new house in San Diego for $400,000. Exactly one year later John is transferred by his company to a position in Denver. They sell the San Diego house for $450,000 and buy one in Denver for $200,000. What is their taxable gain?

a.$0

b.$50,000

c.$200,000

d.$250,000

Barbara has ordinary income of $30,000. In addition, she has a short-term capital loss of $2,000 and a long-term capital loss of $5,000. What may Barbara claim currently, and what is the amount and nature of her carry-forward?

a.Barbara claims a $2,000 current loss and a $5,000 long-term carryforward.

b.Barbara claims a $3,000 current loss and a $2,000 long-term carryforward.

c.Barbara claims a $3,000 current loss and a $4,000 short-term carryforward.

d.Barbara claims a $3,000 current loss and a $4,000 long-term carryforward.

Mike inherited a stock portfolio from his grandfather. His grandfather had purchased the stock many years ago for $35,000. At the date of his grandfather's death, the portfolio was valued at $200,000. Mike was afraid the value of the stock would decline, so he sold the entire portfolio for $200,000, incurring sales commissions of $1,000. What is Mike's basis, and does he have a gain or loss?

a.Basis $35,000; gain $165,000

b.Basis $35,000; gain $164,000

c.Basis $200,000; gain $0

d.Basis $200,000; loss $1,000

Arlene purchased interests in three limited partnerships during the previous 6 years. During 2019, Arlene had income of $22,000 from one of the partnerships and $5,000 from a second. She had a loss from the third partnership of $36,000, salary income of $55,000, and dividend income of $3,000. What is Arlene's net passive income or loss before any limitations?

a.$36,000 net loss

b.$3,000 net loss

c.$0 net loss

d.$9,000 net loss

e.None of the choices listed are correct.