James and Ellen Connors,who are both 50 years old and married,sell their personal residence on July 25,2014 for $950,000.They have lived in the home for 20 years.The basis of the home is $350,000.They purchased a new home for $1,000,000 in August 2014.After living in that home for 219 days,the Connors were forced to sell their new home in 2015 for $1,300,000 and move to another climate due to Ellen's severe health problems.
a.What is the amount of gain recognized on the home sale in 2014?
b.What is the amount of the gain recognized on the home sale in 2015?

Question

Quizplus · Accepted Answer

The Answer of James and Ellen Connors,who are both 50 years old and married,sell their personal residence on July 25,2014 for $950,000.They have lived in the home for 20 years.The basis of the home is $350,000.They purchased a new home for $1,000,000 in August 2014.After living in that home for 219 days,the Connors were forced to sell their new home in 2015 for $1,300,000 and move to another climate due to Ellen's severe health problems.
a.What is the amount of gain recognized on the home sale in 2014?
b.What is the amount of the gain recognized on the home sale in 2015?

James and Ellen Connors,who Are Both 50 Years Old and Married,sell