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Joey bought his home in 2012 for $250,000, and used it as his principal residence until...

Joey bought his home in 2012 for $250,000, and used it as his principal residence until he sold it in 2018 for $140,000.  What recognized gain or loss does Joey include in his 2018 taxable income?

a.               $110,000 recognized loss.

b.               Neither gain nor loss.

c.               $110,000 recognized gain.

d.               $140,000 recognized gain.

11. Fred and Ethel file a joint return for 2018.  Fred bought his home in 2014 for $300,000 and has used it as his principal residence ever since.  Ethel moved into Fred’s home when they married in January, 2017.  Fred sold the home September 30, 2018 for $775,000. What is the least recognized gain Fred and Ethel can report on their joint return for 2018?

a.               $0.

b.               $225,000.

c.               $475,000.

d.               $775,000.

12.            Mickey and Minnie file a joint return for 2018. Mickey bought his home in 2014 for $300,000 and has used it as his principal residence ever since.  Minnie moved into Mickey’s home when they married in January, 2016.  Mickey sold the home September 30, 2018 for $775,000.  What is the least recognized gain Mickey and Minnie can report on their joint return for 2018

a.               $0.

b.               $225,000.

c.               $475,000.

d.               $775,000.

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