Question

Gary, who is single, sells his principal residence (owned and occupied by him for seven years) in November 2019 for a realized gain of $148,000. He had purchased a more expensive new residence eight months prior to the sale. He anticipates that he will occupy this new house as his principal residence for only about 18 additional months. He expects it to appreciate substantially while he owns it. Gary would like to recognize the realized gain on the 2019 sale to offset a large investment loss from the sale of stock. Can he recognize the realized gain of $148,000 on the sale of his principal residence in 2019? Explain.

Answer 1

Answer:

The offer of Grays head living arrangement in November 2016 Qualifies for the 121 exclusion. Under the arrangement of the demonstration, none of dark's Realized Gain of $ 148000 Recognized.  

Grey can select to Forgo the 121 Exclusion, right now/her perceived increase is $1,48,000 making this political decision to swear off this political decision is useful in light of the fact that dim is anticipating selling his new head habitation inside year and a half and the acknowledged addition is wanted to be bigger than $148,000.