Mr and Mrs. Stell own and live in a house, with an adjusted basis of $360,000, that was purchased in 1998. The house is destroyed by a tornado on July 10 of the current year, and the Stells receive insurance proceeds of $460,000. They purchase another residence for $560,000 four months later

Read the requirements

a. May they exclude the $100,000 gain, and if so, what is the basis of the residence purchased in November?

B. May they defer the $100,000 gain, and if so, what is the basis of the residence purchased in November?

Mr and Mns. Stell own and ive in a house, with an affusted bash of 5360,000 , that was purchased in 1998 . The house is destroyed by a bomado on Jily 10 of the current year, and a. May they exclade the 5100,000 gain and if so, whe is the basis of the residence purchased in November? A. Ves ney may exchuth the gain unber See 1033 B. You they maxy exclude the gain under Sec 1031 C. Na, ther may not exclude the pain D. Yes, hey mar exchade the gein under Sec 121 Mr. and Mrs. Steli own and live in a house, with an adjusted basis of $350,000, that was purchased in 1998 . The house is destroyed by a tornado on fuly 10 of the curnent year, and the Stelts recelve hisurance proceeds of $400,000. They purchase another iesidence for $560,000 four months tater Read the teavicements. C. No, they may not exclude the gain 0. Yes, ther may exclude the gain under Sec 121 The basis of the resldeoce parchated in November is b. Mey they defer the $100,000 gain, and if se. what is the basis of the residence purchoud in Navember? A. No they may not defer the gain. The siells cannet exclede the gain under sec 121 Requirements C. No, thes D. Yes. the a. May they exclude the $100,000 gain, and if so, what is the basis of the residence purchased in November? The basis of th b. Way they doter the 5+00,000 gain and if to, what is the bosis of the is: residence purchased in Nowember? b. May they def A. No thes 14. Yes, the