Tony and Janice were married in January, 2020. After they married, Janice moved into his home where he had lived for 40 years. During March, 2021, they sold the home. It had an adjusted basis of $80,000 and was sold for $500,000. They paid realtor commissions of $24,000. Two months after the sale, they purchased another home for $350,000. a. What is their realized and recognized gain on the sale of the house? b. What is their basis in their new home?

c. From a planning perspective, what would have been a better course of action for the couple in terms of when they would sell the home?