Federal Tax Research 10th Edition by Roby Sawyers,William Raabe,Gerald Whittenburg,Steven Gill

Exercise 77

Tom and Donna were divorced three years ago. At the time of their divorce, they owned a residence whose value had significantly increased during the marriage. Tom remained half-owner of the house, but he moved out and allowed Donna to continue living in the house. In the current year, Tom and Donna sold the house for $500,000. Last year, Tom purchased a new house for $390,000.
a. List as many possible tax research issues as you can to determine tax treatment(s) available to Tom on the sale and purchase of the residence.
b. After completing your list of tax research issues, list the keywords you might use to construct an online tax research query.