Troy (single) purchased a home in Hopkinton, MA on January 1, 2007 for $300,000. He sold the home on January 1, 2014 for $320,000. How much gain must Troy recognize on his home sale in each of the following alternative situations?
a. Troy rented the home out from January 1, 2007 through November 30, 2008. He lived in the home as his principal residence from December 1, 2008 through the date of sale. Assume accumulated depreciation on the home at the time of sale was $7,000.
b. Troy lived in the home as his principal residence from January 1, 2007 through December 31, 2009. He rented the home from January 1, 2010 through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $2,000.
c. Troy lived in the home as his principal residence from January 1, 2007 through December 31, 2012. He rented out the home from January 1, 2013through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0.
d. Troy rented the home from January 1, 2007 through December 31, 2010. He lived in the home as his principal residence from January 1, 2011 through December 31, 2011. He rented out the home from January 1, 2012 through December 31, 2012 and he lived in the home as his principal residence from January 1, 2013, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0.