Howard Wilson, a single individual, sold his principal residence in Cleveland eight months ago and excluded his entire $148,000 gain on the sale from gross income. He purchased and moved into a new home in a suburb of Chicago. Shortly thereafter, Howard’s 20-year-old son moved in with him. The son was on probation from a prison sentence for drug dealing and assault with a deadly weapon. Howard’s neighbors learned about the son’s criminal record and have organized protests against the son’s presence in the community. Howard has received several verbal and written threats, and his house has been spray-painted with grafﬁti. The atmosphere has become so hostile that Howard has decided to sell his new home and relocate in a different city. Will he be eligible to exclude any of his gain on this second sale?
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