On January 12, 2014, Mr. and Mrs. Nixon moved out of their old residence (where they had
Question:
On January 12, 2014, Mr. and Mrs. Nixon moved out of their old residence (where they had lived for 22 years) and into a new residence purchased nine days earlier on January 3. They finally sold their old residence on June 7, 2014, for a $278,000 realized gain.
a. How much gain did they recognize on sale of their old residence?
b. On February 26, 2016, Mr. and Mrs. Nixon sold their new residence for a $48,000 realized gain and moved into a nearby house with a swimming pool. How much gain did they recognize?
c. How much gain did they recognize if they sold the new residence because Mrs. Nixon accepted a job in a different state, and the family had to relocate?
Step by Step Answer:
Principles Of Taxation For Business And Investment Planning 2017
ISBN: 9781259753015
20th Edition
Authors: Sally M. Jones, Shelley C. Rhoades Catanach, Sandra R. Callaghan