The course is Introduction to federal taxation.

Case Analysis & Discussion
Analysis of Law-
The Internal Revenue Code (IRC) is the federal statutory tax laws of United States. It covers income tax, estate and gift taxes, employment taxes, excise taxes, etc. in the United States. In this research paper, Section 121 of IRC is being discussed which is a part of income tax and deals with certain exemptions.
Before analysing above section, it is imperative to refer to the definition of Gross Income which is enumerated in Section 61 of IRC. Relevant part of the Section 61 is reproduced below-
“I.R.C. § 61(a) General Definition — 
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items (“Internal Revenue Code, § 61. Gross Income Defined, 2020)
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I.R.C. § 61(a)(3) — 
Gains derived from dealings in property;”
Part III of Sub-chapter B of Chapter1 of the IRC deals with the items which are to be specifically excluded while computing Gross Income. Section 121(a) of Part III specifies that gross income shall exclude gain derived from dealings in property, if the said property is owned and used by the taxpayer as a principal residence for an aggregate period of 2 years or more in the preceding 5 years from the date of sale or exchange. However, the exemption under said section can be claimed with certain limitations, which are as follows:
i. Exemption can be claimed upto $250,000
ii. In case of Joint return of husband and wife, the exemption limit will be $500,000 if-
a) any of the spouse meets the ownership requirement;
b) both the spouse have used the property as principal residence for an aggregate period of 2 years or more; and
c) none of the spouse has claimed exemption with respect to any other property within 2 year prior to sale or exchange of such property (“Topic No. 701 Sale of Your Home”, N.D).
iii. If the spouses do not meet the requirement of joint return the exemption shall be determined considering each spouse as an unmarried individual. However, in such cases the ownership requirement for each spouse will be treated as fulfilled if any of the spouses owned the property during the period (“26 U.S. Code § 121.Exclusion of gain from sale of principal residence”, N.D).
iv. The exemption can be claimed with respect to only one sale or exchange during the period of 2 years (“IRC §121 & §1031”, N.D).
v. If one of the spouse was deceased on the date of such sale or exchange and the surviving unmarried individual sold or exchanged the property within 2 years from the date of death of such spouse and the requirements of joint return were fulfilled immediately prior to date of death of such spouse then the exemption can be claimed upto $250,000 instead of $500,000 (Internal Revenue Code, § 121. Exclusion Of Gain From Sale Of Principal Residence”, 2020).
vi. The taxpayer cannot claim the exemption with respect to gain allocated to ‘period of non-qualified use’ which is defined as the period during which the property is not used as a principal residence. However, any period prior to 1st January, 2009 shall not be considered for calculating the non-qualified use period (Siegel, 2016).
vii. The gain with respect to period of non-qualified use shall be calculated in the ratio which the aggregate period of non-qualified use bears to total period during which such property was owned.
The benefit of exemption under Section 121 is not available to the extent of gain...