Exercise 15-22 (Algorithmic) (LO. 4)
Omar, who is single, sold his principal residence on April 10, 2022, and excluded the realized gain under § 121 (exclusion on the sale of a
principal residence). On April 12, 2022, he purchased another principal residence, which he sells on January 12, 2023, for a realized gain of
$48,600.
Based on each selling reason listed below, indicate if Omar can exclude the January 2023 $48,600 realized gain by selecting "No, may not
exclude" or "Yes, can exclude" and enter the amount of recognized gain for each.
If an amount is zero, enter "0". Do not round intermediate calculations.
a. His noisy neighbors?
b. A job transfer to another city?
Exclude or Not?
Amount of
§ 121 exclusion
Amount of
recognized gain
No, may not exclude
0
48,600
Yes, can exclude
48,600
0
