Tony and Janice Have Been Married and Living Together in Tony's

question 9

Multiple Choice

Tony and Janice have been married and living together in Tony's home for 5 years.He lived in the home alone for 20 years prior to their marriage.They sell the home,which has an adjusted basis of $80,000,for $450,000.Tony and Janice plan to use the § 121 exclusion (exclusion of gain on sale of principal residence) .In Janice's prior marriage to Dan,Dan sold his principal residence and used the § 121 exclusion.Janice and Dan filed joint returns during their years of marriage.Tony and Janice purchase a replacement residence for $200,000 one month after the sale.What is the recognized gain and basis for the new home?

• A)$0;$80,000.
• B)$0;$200,000.
• C)$120,000;$200,000.
• D)$370,000;$200,000.
• E)None of the above.

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Definitions:

Aggressive Behavior

Conduct aiming to cause harm or convey hostility towards others.

Assertive Communication

A style of communication where individuals express their feelings and desires openly and respectfully, without infringing on the rights of others.

Aggressive Attitude

A behavioral disposition that reflects a tendency to confront or attack others either verbally or physically.

Collaborative Strategy

An approach to problem-solving or goal achievement that involves working with others in a joint effort.