Property Transactions: Nonrecognition of Gains and Losses 26. A $ (22. John Johnson, single, sold his home that he had owned for 20 years for $650,000. He purchased it for $125,000 and made $50,000 of capital improvements on the home during his time of ownership. a. How much gain is excluded? How much is recognized? b. If John purchased another home for $425,000, how much is excluded and recognized? 27. O 23. Milton and Maxine Miller purchased a home in New York City for $350,000 on October 1, 2018. Milton obtained a job in