McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 22

A self-employed taxpayer deducts home office expenses, including depreciation expense.The taxpayer then sells the home at a $100,000 gain.Assuming the taxpayer meets the ownership and use tests, does the full gain qualify for exclusion? Explain.