McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 40

A taxpayer purchases and lives in a home for a year.The home appreciates in value by $50,000.The taxpayer sells the home after her employer transfers her to an office in a nearby city.The taxpayer buys a new home.What information do you need to obtain to determine whether the taxpayer is allowed to exclude the gain on the sale of the first home?