Payton got married in November of 2021 and her husband moved into the home Payton already owned,
Fantastic news! We've Found the answer you've been seeking!
Question:
the home Payton already owned, which had a basis of $300,000. Payton had
owned and occupied the residence of 6 years. Neither Payton nor her husband had
excluded the gain on the sale of any other residence during the last 3 years. In March of
2022, Payton and her husband decided to sell the house. To make it more attractive
to prospective buyers, Payton added a swimming pool in the backyard at a cost of
$36,000 and paid for the work immediately. They completed a sale of the house in May
for $980,000, Broker's commissions and other selling expenses amounted to $53,000. To
make life easier, Payton and her husband decided not to buy a replacement house.
Instead, they rented an apartment and purchased an annuity with the net proceeds from the
sale. What is the amount of the recognized gain to be reported on their joint federal
income tax return for 2022?
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
Posted Date: