Pete sold his home in Year 1, which he had lived in for 15 years. Petes records reflect the following: Signed a contract on 12/17/Yr 1 to sell his home Sold old residence on 12/20/Yr 1 for $471,000 Selling expenses on the old residence 5,000 The following two items were done during the 90-day period ending 12/17/Yr 1 and paid by Pete on 2/4/Yr 2: Installed a new water heater and sump pump 900 Replaced broken windows; did touch-up painting 800 Basis of old home as of 9/15/Yr 1 155,000 Based on the facts provided above, what is the amount of Petes realized gain and recognized gain?

]A. Realized Gain $309,000 Recognized Gain $59,300

B. Realized Gain $310,100 Recognized Gain $60,100

C. Realized Gain $310,100 Recognized Gain $310,100

D. Realized Gain $309,000 Recognized Gain $309,300

Juan sold his home in Year 1. Juan had owned and occupied the home for 8 years. Based on the following facts, what is the amount of his recognized gain?

Signed a contract on 3/4/Yr 1 to sell his home.
Sold 8/3/Yr 1 for	$1,000,000
Selling expenses	50,000
Replaced and paid for a broken window 3/2/Yr 1	300
Basis of old home before repairs and improvements	600,000

• A.$0

• B.$100,000

• C.$150,000

• D.$350,000

Mr. Scott owned a parcel of real estate that he was holding for investment. It had an adjusted basis of $50,000. Mr. Scott exchanged the real estate for the assets listed below:

Land to be held for investment:
Fair market value	$60,000
A boat for personal use:
Fair market value	3,000
Cash	2,000

What is the amount of Mr. Scotts basis in the real estate that he received?

• A.$45,000

• B.$60,000

• C.$50,000

• D.$58,000

John and Lynn had lived in the home for the past 10 years and purchased the home for $500,000. They sold the home for $1.2 million. What is the maximum amount of gain they can exclude in the current year?

• A.$250,000

• B.$700,000

• C.$500,000

• D.$0

Jeff and Lynn were married in August of this year. Prior to their marriage, they had each maintained a separate principal residence. Jeff had a condo that he purchased for $160,000 15 years ago and sold in December of last year for $380,000. Lynn had a home that she purchased 10 years ago for $100,000 and sold in December of this year for $400,000. What is the amount of their recognized gain this year?

• A.$20,000

• B.$250,000

• C.$0

• D.$50,000

Arnold (age 60) and Beatrice (age 45) are married. They sold their home, owned by Arnold, at a profit of $300,000 on March 1, 2020. Beatrice unexpectedly died in September 2020 of a disease. Arnold remarried in February 2021 and purchased a new, more expensive home in March. Beatrices mother was appointed as executor of her estate. She elected to file a separate return for Beatrice for 2020. If Beatrices mother does not join Arnold in electing to exclude gain, how much of the gain can Arnold exclude on his 2020 return?

• A.$300,000.

• B.$250,000.

• C.None.

• D.$150,000.

On January 1, 2019, Fred and Mary Lou purchased a home for $150,000. Fred and Mary Lou are married and file jointly. On January 1, 2020, Fred and Mary Lou decided that they did not like the home and sold it for $158,000. What is the recognized gain on the sale?

• A.$0

• B.$8,000

• C.$158,000

• D.$4,000

On February 1, Year 1, Jamie purchased a home for $96,000. On January 1, Year 2, Jamie decided he did not like his house and sold it for $108,000. What is his recognized gain on the sale?

• A.$6,500

• B.$5,500

• C.$0

• D.$12,000

Tim and Gwenn sold their jointly held home on June 19 of the current year for $435,000. Their adjusted basis in the home at that time was $200,000. They both have lived in the home for the past 5 years. What is the recognized gain on the sale of the home?

• A.$235,000

• B.$250,000

• C.$500,000

• D.$0

In a nontaxable exchange, Tony traded a warehouse having an adjusted basis of $50,000 and a fair market value of $75,000 for another warehouse having a fair market value of $110,000. In addition, Tony paid cash of $30,000. What is Tonys basis in the warehouse?

• A.$110,000

• B.$105,000

• C.$80,000

• D.$75,000

Frances and George sold their principal residence for $1,000,000. They purchased the home 10 years ago for $250,000. They incurred improvement costs of $100,000, real estate commissions of $60,000, and other settlement costs of $10,000. They lived in this home until the date of sale. Frances and George file a joint return and have not previously excluded a gain on another home. What is their maximum taxable gain?

• A.$140,000

• B.$150,000

• C.$750,000

• D.$80,000