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Question: In 2015, Tonya met Sam. At that time Sam owned his own home which he purchased for $300,000 using a loan he received from the local bank. Tonya Taxpayer received a house in 2019 as part of an inheritance from her mother and has used the house as her primary residence since. The fair market value at the time of her mother's death was $300,000. Her mother purchased the house for $500,000 in 2015 Sam lived in his home until 2022 when he moved into Tonya's house. Sam and Tonya intend to sell one or both houses so they can purchase a home together. Tonya's house is valued at $700,000. Sam's house is now valued at $550,000. Discuss the tax or potential income tax consequences for each situation. Provide a full and detailed analysis with proper authority cited. Assume that they filed a joint tax return
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