Nancy Sold Her Section 1202 Stock for $9,000,000 on August
Nancy sold her Section 1202 stock for $9,000,000 on August 7, 2017. She had purchased the stock nine years ago for $1,500,000. She invested $4,500,000 in other qualifying Section 1202 stock. How will Nancy treat the gain on this sale for tax purposes? How would your answer change if the stock is instead sold in 2018?
George and Sally sold their primary residence in New Jersey on January 1, 2016 after having lived in the home for 20 years. (They used their $500,000 exclusion to avoid recognizing their $289,000 gain on the sale.) They decided to become permanent Florida residents and moved into the condominium they had purchased on January 2, 2014 at a foreclosure auction. Unfortunately, Sally missed all of her friends and family in New Jersey and in the latter part of 2018, they put the condominium up for sale and they sold it on January 2, 2019. They had purchased the condominium for only $65,000 and after putting in improvements at a cost of $21,000, they were able to sell it for $525,000. What is their realized and recognized gain on the sale of the condominium?
Craig and Sally, a married couple, file a joint tax return and report taxable income (excluding their home sale) of $325,000 for 2018. They purchased their home on December 1, 2016 for $250,000 and have made $100,000 of improvements during the time they owned the home. They sold the home on May 31, 2018 after Craig accepted a job in another state netting $775,000 after the expenses of the sale. What are the tax consequences of this sale?