Assume instead that in the preceding problem, as part of the divorce agreement, Gary retained ownership of the residence but the use of the home was granted to Gerda as long as Gary owns the residence. If Gary sells the residence on October 18, 2012 for $350,000, how much can Gary exclude?
A) $350,000
B) $250,000
C) $225,000
D) $-0-
E) None of the above

Question

Quizplus · Accepted Answer

Gary can exclude the $225,000 gain since he can count the time that Gerda used the residence as part of the divorce agreement.

Assume Instead That in the Preceding Problem, as Part of the Divorce