Question

On November 1, year 1, Jamie (who is single) purchased and moved into her principal residence. In the early part of year 2, Jamie was laid off from her job. On February 1, year 2, Jamie sold the home at a $45,500 gain. She sold the home because she found a new job in a different state. How much of the gain, if any, may Jamie exclude from her gross income in year 2

Answer 1

Answer: $31,250

Explanation:

The amount from the gain that Jamie may exclude from her gross income in year 2 will be calculated thus:

= $250,000 × 3/24

= $31,250.

Therefore, Jamie may exclude $31,250 from the gross income in year 2.

Thanks