Pedro, age 57, is the sole owner of his principal residence, which he has owned and occupied for 10 years. Maria, his spouse, has lived there with Pedro for the full 10 years. He sells the house for a realized gain of $340,000. If an amount is zero, enter "0". a. Can Pedro use the § 121 exclusion if he and Maria file a joint return? If Pedro can use the § 121 exclusion, the maximum eligible amount of § 121 exclusion (before any limitations) is $fill in the blank e5f27fff7ffcfcb_2. Their realized gain is $fill in the blank e5f27fff7ffcfcb_3 and the recognized gain is $fill in the blank e5f27fff7ffcfcb_4. b. Can Pedro use the § 121 exclusion if he files a separate return? What is the maximum eligible amount of the exclusion? $fill in the blank 270badf95f9402e_2 The recognized gain is $fill in the blank 270badf95f9402e_3. c. Assume instead that the realized gain is $550,000 and a joint return is filed.
Problem 13-86 (LO. 8)
Pedro, age 57, is the sole owner of his principal residence, which he has owned and occupied for 10 years. Maria, his spouse, has lived there with Pedro for the full 10 years. He sells the house for a realized gain of $340,000.
If an amount is zero, enter "0".
a. Can Pedro use the § 121 exclusion if he and Maria file a joint return?
If Pedro can use the § 121 exclusion, the maximum eligible amount of § 121 exclusion (before any limitations) is $fill in the blank e5f27fff7ffcfcb_2. Their realized gain is $fill in the blank e5f27fff7ffcfcb_3 and the recognized gain is $fill in the blank e5f27fff7ffcfcb_4.
b. Can Pedro use the § 121 exclusion if he files a separate return?
What is the maximum eligible amount of the exclusion?
$fill in the blank 270badf95f9402e_2
The recognized gain is $fill in the blank 270badf95f9402e_3.
c. Assume instead that the realized gain is $550,000 and a joint return is filed.
The recognized gain is $fill in the blank ba662efb0fe100c_1.
d. Assume instead that the realized gain is $550,000 and separate returns are filed.
The recognized gain is $fill in the blank b7a16fff8023049_1.
e. Assume same facts as in requirement (a) except that Maria and Pedro have been married for only 18 months and that she has lived in his house only since their marriage. They file a joint return.
The recognized gain is $fill in the blank f037da0b5058f9d_1.
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