Geralyn and Marco sold their home and moved into a smaller home. They used their Section 121 election to exclude their $20,000 gain on the sale of the larger home. Six months after they moved into the smaller home, Geralyn died. Two months later Marco had a stroke and was in the hospital for one month and in a rehabilitation center for another seven months. At the end of that time, Marco moved back to his home. Three months later, he put the home up for sale and sold it within one month at a gain of $185,000 and moved out.

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