If Ben in the preceding problem purchased another home for $400,000, how much gain is recognized?
A) $510,000
B) $10,000
C) $260,000
D) $45,000
E) None of the above

Question

Quizplus · Accepted Answer

Ben's exclusion is still $250,000, and he must still recognize $260,000. the fact that he moved into another home is irrelevant and there is no oportunity to defer the $260,000 gain through an adjustment in the basis of the new residence as was the case under old law

If Ben in the Preceding Problem Purchased Another Home for $400,000