On August 8,2013,Sam,single,age 62,sold for $210,000 his principal residence,which he has lived in for 10 years,and which had an adjusted basis of $60,000.On November 1,2013,he purchased a new residence for $80,000.For 2013,Sam should recognize a gain on the sale of his residence of:

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Sam qualifies for the home sale exclusion, which allows him to exclude up to $250,000 of gain from the sale of his principal residence. His gain is $150,000 ($210,000 - $60,000), which is fully excluded, resulting in a recognized gain of $0.

On August 8,2013,Sam,single,age 62,sold for $210,000 His Principal Residence,which He