On March 10, 2019, Elizabeth, a college
On March 10, 2019, Elizabeth, a college professor, purchased a house for $300,000. She did not move into the house until August 8, 2019. On August 1, 2020, she accepted a po-sition as a visiting professor at Hogwatts University for one year and moved to Liverpool where she rented an apartment. While away at Hogwatts, two of her former students lived in the house but did not pay rent. She returned to the house on August 1, 2021, and lived in the house until July 15, 2022, when she sold the house for $500,000. The realtor’s commission was $35,000. Determine her recognized gain.
Elizabeth purchased house on Mar 10, 2019 and sold it on July 15 , 2022 . So she sold it after holding the capital asset for more than a 3 years period and hence the gain will be recognised as capital gain as per IRS rules. The calculation of capital gain is as under ----
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Will any of the gain be excluded under Section 121?
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