C

D

Stephen will be eligible to exclude gain on Home $2$ only if he waits until $2029$ to sell it$.$

Stephen will be eligible to exclude the gain on Home $2,$ if he marries in $2024$ and his spouse

is eligible for the gain exclusion.

In certain circumstances, Stephen may be able to exclude gain on Home $2$ even if he sells

Home $2$ in $2024.$

On February $1,2024,$ Stephen $($who is single$)$ sold his principal residence $($Home $1)$ at a $$120,000$

gain. He will be able to exclude the entire gain on his $2024$ tax return. Stephen purchased and

moved into another residence $($Home $2)$ on the same day.

Assuming Stephen lives in Home $2$ as his principal residence until he sells it$,$ which of the following

statements is true?

A

B

Under no circumstance will Stephen be allowed to exclude gain on Home $2$ if he sells Home

$2$ in $2024.$