Question: On August 3 1 , 2 0 2 3 , Nolan and Lei, who file a joint return and live in Charleston, South Carolina, sell

On August 31,2023, Nolan and Lei, who file a joint return and live in Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized gain of $323,800 was excluded under 121. They purchased another personal residence in Charleston for $518,080 on September 1,2023.
In 2024, Nolan's employer transfers him to Houston, Texas. The couple sells the Charleston home on February 28,2024, and purchases a new home in Houston. The realized gain on the second sale is $291,420.

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