1. Mary and Pete have lived in a home from 1973 to 2020. They purchased the home...
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Question:
1.
Mary and Pete have lived in a home from 1973 to 2020. They purchased the home for $180,000 and sold it for $560,000. Assume the couple has not used a section 121 exclusion before. How much will their AGI increase from selling the house?
- $560,000
- $60,000
- $380,000
- $130,000
2.
Ross and Rachel purchased a home in 2019. Sadly Rachel divorced Ross leaving Ross with the house. He can't really afford the house alone so he sells it in 2020 for $600,000. The house was Ross's primary residence for 292 days over the past 2 years. The basis is $325,000. Assume no prior 121 exclusion has been used. How much will Ross's AGI increase due to selling the house?
$600,000
$0
$150,000
$175,000
$50,000
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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