Taxpayer has owned and lived in Taxpayers principal residence for 10 years, the last year with the Taxpayers Spouse after they married. Spouses decide to sell the residence which has a $100,000 basis for $500,000.

(a) If the Spouses file a joint return do they have any gross income?

(b) What result if the Spouses had lived together for two years in Taxpayers residence prior to their marriage and sold the residence after one year of marriage for $500,000?

(c) What result in (a), above, if after one year of marriage Taxpayer pursuant to their divorce decree deeded one-half of the residence to Spouse and Spouse lived in the residence while Taxpayer moved out and, one year later, they sold the residence for $500,000?

(d) What result in (a), above, if after one year of marriage Taxpayer pursuant to their divorce decree deeded one-half of the residence to Spouse and Taxpayer continued to occupy the residence while Spouse moved out, and, one year later, they sold the residence for $500,000?