Denise married Glenn on January 10, 2014. Glenn sold his personal residence on October 25, 2013, and excluded the entire gain of $175,000. They had originally planned to live in the house that Denise had received as a gift from her parents in 2005, but they decided instead to purchase a larger house, and Denise sold her house 60 days after their wedding and realized a $370,000 gain.

a. If Denise and Glenn file a joint return, how much of the $370,000 gain may be excluded from income?

b. If Denise files as married filing separately, how much of the $370,000 gain may be excluded from income?

Answer rating: 100% (QA)

The individual taxpayer may exclude the gain up to 250000 provided the property was occupied fo... View the full answer