William and Kate married in 2019 and purchased a new home together.Each had owned and lived in separate residences for the past 5 years.William's adjusted basis in his old residence was $200,000; Kate's adjusted basis in her old residence was $120,000.In late 2019,William sells his residence for $500,000 while Kate sells her residence for $190,000.What is the total gain to be excluded from these transactions in 2019?
A)$0
B)$250,000
C)$320,000
D)$370,000

Question

Quizplus · Accepted Answer

The gain excluded from the sale of William's residence is $300,000 ($500,000 - $200,000) and the gain excluded from the sale of Kate's residence is $70,000 ($190,000 - $120,000). Therefore, the total gain excluded is $370,000 ($300,000 + $70,000).

William and Kate Married in 2019 and Purchased a New