On February 1, 2019, Patterson (who is single) sold his principal residence (home 1) at a $150,000 gain. He was able to exclude the entire gain on his 2019 tax return. Patterson purchased and moved into home 2 on the same day. Assuming Patterson lives in home 2 as his principal residence until he sells it, which of the following statements is true? Question 29 options: Patterson will not be allowed to exclude gain on home 2 if he sells home 2 in 2020. Patterson will be eligible to exclude gain on home 2 only if he waits until 2024 to sell it. In certain circumstances, Patterson may be able to exclude gain on home 2 even if he sells home 2 in 2019. None of the choices are correct.
On February 1, 2019, Patterson (who is single) sold his principal residence (home 1) at a $150,000 gain. He was able to exclude the entire gain on his 2019 tax return. Patterson purchased and moved into home 2 on the same day. Assuming Patterson lives in home 2 as his principal residence until he sells it, which of the following statements is true?
Question 29 options:
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Patterson will not be allowed to exclude gain on home 2 if he sells home 2 in 2020. |
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Patterson will be eligible to exclude gain on home 2 only if he waits until 2024 to sell it. |
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In certain circumstances, Patterson may be able to exclude gain on home 2 even if he sells home 2 in 2019. |
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None of the choices are correct. |
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