Carson, a taxpayer who is not in bankruptcy or insolvent, owns a principal residence with a $400,000 mortgage, which is

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Carson, a taxpayer who is not in bankruptcy or insolvent, owns a principal residence with a $400,000 mortgage, which is

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Carson, a taxpayer who is not in bankruptcy or insolvent,owns a principal residence with a $400,000 mortgage, which isforeclosed. The home is then sold for $300,000 in satisfaction ofthe debt. This results in $100,000 of Discharge of Indebtedness(DOI) income includible in Carson ’s gross income in 2022. Underthe Consolidated Appropriations Act, 2021, Carson may claim thequalified principal residence indebtedness exclusion for whatamount? A. $0 B. $100,000 C. $300,000 D. $400,000
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