On August 31, 2014, Harvey and Margaret, who file a joint return and liv ein Cha
ID: 2490695 • Letter: O
Question
On August 31, 2014, Harvey and Margaret, who file a joint return and liv ein Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized gain of $292,000 was excluded under 121. They purchased another personal residence in Charleston for $480,000 on September 1, 2014. However in 2015, Harvey’s employer transfers him to Houston, Texas. They sell their Charleston home on February 28, 2015, and purchase a new home in Huston. The realized gain on the second sale is $180,000. What is Harvey and Margaret’s recognized gain on the second sale?
Explanation / Answer
ANS;
Solution.
Harvey and Margaret's recognized gain on the second sale is $180,000
Because they don't meet cretaria of minimum one year living in the case of job transfer. Harvey and Margaret' only use second home only 6 onth From September 1, 2014 to February 28, 2015. if he completed one year in this home than they are able to get deduction of section 121.
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