Ethan (single) purchased his home on July 1, 2012. He lived in the home as his principal residence until July 1, 2019, when he moved out of the home, and rented it out until July 1, 2021, when he moved back into the home. On July 1, 2022, he sold the home and realized a $244,000 gain. What amount of the gain is Ethan allowed to exclude from his gross income? Multiple Choice О $0 О $195,200 О $234,000 О $244,000
Ethan (single) purchased his home on July 1, 2012. He lived in the home as his principal residence until July 1, 2019, when he moved out of the home, and rented it out until July 1, 2021, when he moved back into the home. On July 1, 2022, he sold the home and realized a $244,000 gain. What amount of the gain is Ethan allowed to exclude from his gross income? Multiple Choice О $0 О $195,200 О $234,000 О $244,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Give Solution and provide Correct and incorrect option explanation
![Ethan (single) purchased his home on July 1, 2012. He lived in the home as his principal residence until July 1, 2019, when he moved out of the home, and
rented it out until July 1, 2021, when he moved back into the home. On July 1, 2022, he sold the home and realized a $244,000 gain. What amount of the gain is
Ethan allowed to exclude from his gross income?
Multiple Choice
О
$0
О
$195,200
О
$234,000
О
$244,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18e7d4a0-940e-4ef2-867d-e81272548306%2F985b97bb-f92f-4c7b-a218-25632eb12c1a%2Fs6isb7_processed.png&w=3840&q=75)
Transcribed Image Text:Ethan (single) purchased his home on July 1, 2012. He lived in the home as his principal residence until July 1, 2019, when he moved out of the home, and
rented it out until July 1, 2021, when he moved back into the home. On July 1, 2022, he sold the home and realized a $244,000 gain. What amount of the gain is
Ethan allowed to exclude from his gross income?
Multiple Choice
О
$0
О
$195,200
О
$234,000
О
$244,000
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