Joseph Allen, who is single, purchased his first house in Orono, ME one year ago for $200,000. Katahdin wants to purchase the house for $360,000. Refer to the regulations to determine if he may exclude part of the gain in the following independent cases:
a. He has been unemployed for 16 months and has a chance to start work for Penobscot Manufacturing whose plant is located 62 miles from Joseph’s home in Orono.
b. His dependent son, Ryan, has chronic asthma, and the son’s doctor has advised Joseph that Ryan should live in a warm, dry climate to mitigate the chronic asthma. Joseph and Ryan move to Nevada.
c. Joseph has become increasingly annoyed at the amount of traffic in his neighborhood although the amount of traffic has not increased much compared to the traffic when he purchased the house.
A partial list of research sources is:
• Reg. Sec. 1.121-3(c), (d) and (e)