Leticia and Stephanie Sims purchased a home in Spokane, Washington, for $465,000. They moved into the home on February 1 of year 1 . They lived in the home as their primary residence until June 30 of year 5 , when they sold the home for $907,500. Note: Leave no answer blank. Enter zero if applicable. Required: a. What amount of gain on the sale of the home are the Sims required to include in taxable income? b. Assume the original facts, except that Leticia and Stephanie live in the home until January 1 of year 3 , when they purchase a new home and rent out the original home. They finally sell the original home on June 30 of year 5 for $907,500. Ignoring any issues relating to depreciation taken on the home while it is being rented, what amount of realized gain on the sale of the home are the Simses required to include in taxable income? c. Assume the same facts as in part (b), except that the Sims live in the home until January of year 4, when they purchase a new home and rent out the first home. What amount of realized gain on the sale of the home will the Sims include in taxable income if they sell the first home on June 30 of year 5 for $907,500 ? d. Assume the original facts, except that Stephanie moves in with Leticia on March 1 of year 3 and the couple is married on March 1 of year 4. Under state law, the couple jointly owns Leticia's home beginning on the date they are married. On December 1 of year 3 , Stephanie sells her home that she lived in before she moved in with Leticia. She excludes the entire $192,500 gain on the sale on her individual year 3 tax return. What amount of gain must the couple recognize on the sale in June of year 5 ? Complete this question by entering your answers in the tabs below. What amount of gain on the sale of the home are the Sims required to include in taxable income? Required information Problem 14-44 (LO 14-2) (Algo) [The following information applies to the questions displayed below.] Troy (single) purchased a home in Hopkinton, Massachusetts, on January 1, 2007, for $295,000. He sold the home on January 1, 2022, for $323,400. How much gain must Troy recognize on his home sale in each of the following alternative situations? Note: Leave no answer blank. Enter zero if applicable. Problem 14-44 Part a (Algo) a. Troy rented out the home from January 1, 2007, through November 30,2008. He lived in the home as his principal residence from December 1, 2008, through the date of sale. Assume accumulated depreciation on the home at the time of sale was $9,800. Answer is complete but not entirely correct
