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 $ realized gain is s Their |and the recognized gain is $ b. Can Pedro use the 5 121 exclusion if he files a separate return? What is the maximum eligible amount of the exclusion? The recognized gain is $ c. Assume instead that the realized gain is $550,000 and a joint return is filed. The recognized gain is s d. Assume instead that the realized gain is $550,000 and separate returns are filed. The recognized gain is $ 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 $
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 $ realized gain is s Their |and the recognized gain is $ b. Can Pedro use the 5 121 exclusion if he files a separate return? What is the maximum eligible amount of the exclusion? The recognized gain is $ c. Assume instead that the realized gain is $550,000 and a joint return is filed. The recognized gain is s d. Assume instead that the realized gain is $550,000 and separate returns are filed. The recognized gain is $ 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 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need all to be answered please form a to e
Answer for
a. (yes or no)
b. (yes or no)
![**Scenario: Pedro's Principal Residence Sale**
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.
**Instructions: Enter "0" if an amount is zero.**
**a. Joint Return with Maria**
- **Can Pedro use the § 121 exclusion if he and Maria file a joint return?**
[Dropdown: Yes/No]
- **If Pedro can use the § 121 exclusion, the maximum eligible amount of § 121 exclusion (before any limitations) is $[______].**
- Their realized gain is $340,000, and the recognized gain is $[______].
**b. Separate Return**
- **Can Pedro use the § 121 exclusion if he files a separate return?**
[Dropdown: Yes/No]
- **What is the maximum eligible amount of the exclusion?**
$[______]
- **The recognized gain is $[______].**
**c. Increased Realized Gain**
- **Assume instead that the realized gain is $550,000 and a joint return is filed.**
- The recognized gain is $[______].
**d. Separate Returns with Increased Gain**
- **Assume instead that the realized gain is $550,000 and separate returns are filed.**
- The recognized gain is $[______].
**e. Shorter Marriage Duration**
- **Assume the 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 $[______].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f61e626-7d33-482f-bf18-423884fdaa73%2Fa5fd00ef-996f-4595-9e97-54668ff3a13b%2F1peqgnv_processed.png&w=3840&q=75)
Transcribed Image Text:**Scenario: Pedro's Principal Residence Sale**
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.
**Instructions: Enter "0" if an amount is zero.**
**a. Joint Return with Maria**
- **Can Pedro use the § 121 exclusion if he and Maria file a joint return?**
[Dropdown: Yes/No]
- **If Pedro can use the § 121 exclusion, the maximum eligible amount of § 121 exclusion (before any limitations) is $[______].**
- Their realized gain is $340,000, and the recognized gain is $[______].
**b. Separate Return**
- **Can Pedro use the § 121 exclusion if he files a separate return?**
[Dropdown: Yes/No]
- **What is the maximum eligible amount of the exclusion?**
$[______]
- **The recognized gain is $[______].**
**c. Increased Realized Gain**
- **Assume instead that the realized gain is $550,000 and a joint return is filed.**
- The recognized gain is $[______].
**d. Separate Returns with Increased Gain**
- **Assume instead that the realized gain is $550,000 and separate returns are filed.**
- The recognized gain is $[______].
**e. Shorter Marriage Duration**
- **Assume the 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 $[______].
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