Who Form 4797 Exclusion 2022-2023

Instructions and Help about Who Form 4797 Exclusion

Hello and welcome to this session this is Professor Farhad in this session we would work to examples illustrates illustrating section 121 the first example is number 28 number 88 actually and here are the facts card purchased his residency on January 2nd 2023 for 260 thousand after having lived there during 2023 as a tenant under a lease with an option to buy so he started living there as early as 2023 but he was not an owner the contract was he had the option to buy but he lived there as a tenant on August 1st 2023 car sells his residence for three hundred and fifteen thousand on June 13 called purchases a new residence for 370 so basically on a timeline this is 2023 he lived there as a tenant the clause was the contract was rent to buy so he lived there for rent to buy and he purchased it he lived there for a year then he purchased it in on January 2nd so at the beginning of the year 2023 so he lived there then he sold it then he sold it so this is 2023 in 2023 he sold that sometime in August okay so basically he was technically an owner because he purchased it here he was technically an owner only during this period this period in this period okay just to know the ownership level so the first question is what was what is called the recognized gain and what's his basis in the new residence so what is his recognized gain how much gain did he he needs to recognize well how do you recognize again well we have to know the amount the the selling proceeds how much it he sold it for he sold it for three hundred...