How much of a replacement residence would Peter have to purchase in order to exclude or defer all gain realized in the preceding problem?
A) $250,000
B) $180,000
C) $120,000
D) $300,000
E) None of the above

Question

Quizplus · Accepted Answer

If, Peter purchased a home for $300,000 or more, he could defer the remaining $120,000 of realized gain. the $550,000 would be reduced by the $250,000 gain excluded leaving $300,000 of proceeds to be used when applying the gain deferral provision under the involuntary conversion rules of Code Sec
 1033.

How Much of a Replacement Residence Would Peter Have to Purchase