For each of the following situations, calculate the amount of taxable gain or deductible loss that the

Fantastic news! We've Found the answer you've been seeking!

Question:

For each of the following situations, calculate the amount of taxable gain or deductible loss that the taxpayer(s) would report in the year of sale on your Excel Spreadsheet. If there is no taxable gain, write 0.

a. Mark is a single taxpayer and purchased his principal residence in March of Year 1 for $200,000. He sold it on December 1 of Year 3 for $180,000.

b. The Johnsons are married filing jointly taxpayers that sold their principal residence on November 30, 2020 for $350,000. They purchased the property in 2010 for $100,000 and added $30,000 in improvements.

c. Mimi files as head of the household and purchased her principal residence on March 1, Year 2 for $240,000. She lived in the home for 3 years and sold it for $470,000. During the 3 years, Mimi took a home office deduction with depreciation totaling $8,000.

d. Betsy and Michael file their taxes jointly and sold their home on September 15 of Year 4 for $970,000 because Betsy had a job transfer out-of-town. They had purchased the property together on September 15 of Year 3 for $605,000.