On January 5 2022, the Pratts purchased a foreclosure home in Dallas, TX for $90,000. After three months of hard work fixing up their new home, Mr Pratt is transferred to Tampa, FL for work. The Pratts manage to sell their Dallas home on April 5, 2022, for a $100,000 gain and purchase a new home in Tampa for $200,000. With the knowledge that a change in employment status is one of the exceptions allowed for gain exclusion under the regulations for IRC 121, how much must the Pratts recognize on their 2022 tax return?
On January 5 2022, the Pratts purchased a foreclosure home in Dallas, TX for $90,000. After three months of hard work fixing up their new home, Mr Pratt is transferred to Tampa, FL for work. The Pratts manage to sell their Dallas home on April 5, 2022, for a $100,000 gain and purchase a new home in Tampa for $200,000. With the knowledge that a change in employment status is one of the exceptions allowed for gain exclusion under the regulations for IRC 121, how much must the Pratts recognize on their 2022 tax return?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 5 2022, the Pratts purchased a foreclosure home in Dallas, TX for $90,000. After three months of hard work fixing up their new home, Mr Pratt is transferred to Tampa, FL for work. The Pratts manage to sell their Dallas home on April 5, 2022, for a $100,000 gain and purchase a new home in Tampa for $200,000. With the knowledge that a change in employment status is one of the exceptions allowed for gain exclusion under the regulations for IRC 121, how much must the Pratts recognize on their 2022 tax return?
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