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 55

Sarah purchased a home on January 1, 2007 for $600,000.She eventually sold the home for $800,000.What amount of the $200,000 gain on the sale may Sarah exclude from gross income in each of the following alternative situations?
a.Sarah used the home as her principal residence until July 1, 2012.She used the home as a vacation home from July 1, 2012 until she sold it on July 1, 2014.b.Sarah used the property as a vacation home until July 1, 2012.She then used the home as her principal residence from July 1, 2012 until she sold it on July 1, 2014.c.Sarah used the home as a vacation home from January 1, 2007 until January 1, 2013.She used the home as her principal residence from January 1, 2013 until she sold it on July 1, 2014.d.Sarah used the home as a vacation home from January 1, 2007 until July 1, 2008.She used the home as her principal residence from July 1, 2008 until she sold it on July 1, 2011.