Question - Paul and Paula Parker purchased a home in Washington, D.C. for $340,000 on November 4, 2011. Paul obtained a job in Roanoke, Virginia, and on December 4, 2012, the Parkers sold their home in Washington for $570,000.
(a) How much gain can the Parkers exclude, and how much is recognized?
(b) Assume that the Parkers, instead, sold their home on December 4, 2012 for $760,000. How much gain can the Parkers exclude, and how much is recognized?