Question: Ron and Mary Carson sold for $ 3 7 8 , 0 0 0 in November of 2 0 2 4 their residence that they

Ron and Mary Carson sold for $378,000 in November of 2024 their residence that they had purchased in 2008 for $140,000. They made major capital improvements during their 11-year ownership totaling $68,000.
a. What is their excluded gain? How much must they recognize?
b. Suppose instead that the Carsons sold their home for $791,000. They moved into a smaller house costing $220,000. What is their excluded gain? How much must they recognize?
c. Assume instead that the Carsons resided in a very depressed neighborhood and the home was sold for only $88,000. How much gain or loss is recognized?

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