This year, Rupert, a single taxpayer, sold a residence for $510,000. Rupert originally purchased the home...

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This year, Rupert, a single taxpayer, sold a residence for $510,000. Rupert originally purchased the home 6 years ago for $200,000. During the first 4 years of ownership, Rupert used the home as his principle residence. He then converted the home to a rental for 2 years, during which time he claimed $25,000 of depreciation deductions. Selling expenses related to the sale were $30,000. What is the character and amount of the gain that he must recognize on the sale of the home? This year, Rupert, a single taxpayer, sold a residence for $510,000. Rupert originally purchased the home 6 years ago for $200,000. During the first 4 years of ownership, Rupert used the home as his principle residence. He then converted the home to a rental for 2 years, during which time he claimed $25,000 of depreciation deductions. Selling expenses related to the sale were $30,000. What is the character and amount of the gain that he must recognize on the sale of the home?

Answer rating: 100% (QA)

To calculate the character and amount of the gain that Rupert must recognize on the sale of the home we need to consider the rules for calculating gai... View the full answer