On August 31, 2019, Harvey and Ling, who file a joint return and live in Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized gain of $385,000 was excluded under § 121. They purchased another personal residence in Charleston for $616,000 on September 1, 2019. However, in 2020, Harvey's employer transfers him to Houston, Texas. The couple sells the Charleston home on February 28, 2020, and purchases a new home in Houston. The realized gain on the second sale is $346,500. Do not round any division. What is Harvey and Ling's recognized gain on the second sale?
On August 31, 2019, Harvey and Ling, who file a joint return and live in Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized gain of $385,000 was excluded under § 121. They purchased another personal residence in Charleston for $616,000 on September 1, 2019. However, in 2020, Harvey's employer transfers him to Houston, Texas. The couple sells the Charleston home on February 28, 2020, and purchases a new home in Houston. The realized gain on the second sale is $346,500. Do not round any division. What is Harvey and Ling's recognized gain on the second sale?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On August 31, 2019, Harvey and Ling, who file a joint return and live in Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized gain of $385,000 was excluded under § 121. They purchased another personal residence in Charleston for $616,000 on September 1, 2019. However, in 2020, Harvey's employer transfers him to Houston, Texas. The couple sells the Charleston home on February 28, 2020, and purchases a new home in Houston. The realized gain on the second sale is $346,500.
Do not round any division.
What is Harvey and Ling's recognized gain on the second sale?
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