On November 1st year I, Jamie (who is single) purchased and moved in to her principal residence. In the early part of year 2, Jamie was laid off her job. On February 1st year 2, Jamie sold the home at a 69,500 gain. She sold the home because she found a new job in a different state. How much of the gain, may Jamie exclude from her gross income in year 2.

On April 1st , year 1, Mary borrowed 160,000 to refinance the original mortgage on her principal residence residence. Mary paid 1 points to reduce her interest rate from 6% to 5%. The loan is for a 30-year period. How much can Mary deduct in year 1 for her point paid.

Harvey rents his second home. During the year, Harvey reported a net loss of 45,500 from the rental. If Harvey is an active participant in the rental and his AGI is 81,600, how much of the loss can he deduct against ordinary income for the year.