In January of 1996, Lawrence, then age 55, sold his principal residence in Seattle and took advantage
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In January of 1996, Lawrence, then age 55, sold his principal residence in Seattle and took advantage of the exclusion available under Section 121. At that time, the maximum exclusion was $125,000. He excluded his entire gain on the sale, which was $100,000. Later that year, he purchased a new residence in Denver that he used as his principal residence. Earlier this year, he sold the Denver residence for a realized gain of $200,000.
What is the maximum amount of gain, if any, that Lawrence may exclude under Section 121?
Related Book For
South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357109144
20th Edition
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
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