Roger Aarons is fifty-six years old and has resided in the same one-family residence in Melville, New York for the last ten years. He has never been married and has no children. Mr. Aarons entered into a legally binding real estate contract to sell his principal residence on November 1, 2021 for $800,000 when his tax basis in the residence was $425,000.00. Roger Aarons died on December 19, 2021 and he left a will appointing Carol Jones, his trusted CPA as the Executrix of his estate. As Executrix of the Estate of Roger Aarons, Carol Jones, CPA consummates the sale of the residence on February 28, 2022, Carol Jones, CPA is especially concerned about the following federal tax issues and asks you for a detailed written response providing guidance on these matters: 1. Can Rogers Homeowners Exclusion be used to reduce income taxes owed to the IRS? 2. In what tax year should the sale of the principal residence be reported?

3. Should the sale of the principal residence be shown on Rogers personal tax return (year 2021 or year 2022?) or should it be reported on the estates income tax return (Form 1041)?