1.Determine the amount of gain that Taxpayers (a married couple filing a joint return) must include...
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1.Determine the amount of gain that Taxpayers (a married couple filing a joint return) must include in gross income in the following situations: (a)Taxpayers sold their principal residence for $600,000. They had purchased the residence several years ago for $200,000 and lived in it over those years. (b)Taxpayers in (a), above, purchased another principal residence for $600,000 and sold it 2 years later for $1 million. (c) What result in (b), above, if the second sale occurred 1 years later? (d)What result in (b), above, if Taxpayers had sold their first residence and were granted nonrecognition under former Section 1034 (the rollover provision) and, as a result, their basis in the second residence was $200,000? (e) What result in (a), above, if the residence was Taxpayers' summer home which they used 3 months of the year? (f)What result if Taxpayer who met the ownership and use requirements is a single taxpayer who sold a principal residence for $400,000 and it had an adjusted basis of $190,000 after Taxpayer validly took $10,000 of post-1997 depreciation deductions on the residence which served as an office in Taxpayer's home? 1.Determine the amount of gain that Taxpayers (a married couple filing a joint return) must include in gross income in the following situations: (a)Taxpayers sold their principal residence for $600,000. They had purchased the residence several years ago for $200,000 and lived in it over those years. (b)Taxpayers in (a), above, purchased another principal residence for $600,000 and sold it 2 years later for $1 million. (c) What result in (b), above, if the second sale occurred 1 years later? (d)What result in (b), above, if Taxpayers had sold their first residence and were granted nonrecognition under former Section 1034 (the rollover provision) and, as a result, their basis in the second residence was $200,000? (e) What result in (a), above, if the residence was Taxpayers' summer home which they used 3 months of the year? (f)What result if Taxpayer who met the ownership and use requirements is a single taxpayer who sold a principal residence for $400,000 and it had an adjusted basis of $190,000 after Taxpayer validly took $10,000 of post-1997 depreciation deductions on the residence which served as an office in Taxpayer's home?
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a In this situation the taxpayers sold their principal residence for 600000 which is 400000 more than the purchase price of 200000 The gain on the sal... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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