Taxpayer Information follows: - Married Filing Joint, age 40 and age 41. Provided 100% of the support of the following dependent who lived with the taxpayers 12 months out of the year. - Daughter, 9 years old - Wages: $85,000:$5,000 Federal Withholding, \$2,000 California Withholding - Standard Deduction. - Purchased Rental House on 1/1/2015 for $450,000. $200,000 allocated to land, and $250,000 allocated to building. Sold Rental House on 9/15/2021 for $500,000. Sold house through a Qualified Section 1031 like-kind exchange to purchase a rental house in Nevada. FMV on date of sale was $500,000. Purchased new rental house on 1/1/2022 for $500,000. - Rental house had no revenue, and the only expense was depreciation in 2021. - Purchased Primary Residence on 1/1/2010 for $150,000. Sold Primary Residence on 9/15/2021 for $500,000. Paid $6,000 sales commission, and $5,000 in closing costs. Used as primary residence for 5 out of the last 5 years