Mike purchased a house 20 years ago for $30,000. He sells the house in December 2010 for
Question:
Mike purchased a house 20 years ago for $30,000. He sells the house in December 2010 for $350,000. He has always lived in the house.
a.How much taxable gain does Mike have from the sale of his personal residence?
$ ____________ b.Assume Mike married Mary 3 years ago and she has lived in the house since their marriage. If they sell the house in December 2010 for $350,000, what is their taxable gain on a joint tax return?
$ ____________
c. Assume Mike is not married and purchased the house only 1 year ago for
$200,000, and he sells the house for $350,000 due to an employment-related move. What is Mike’s taxable gain?
$ ____________
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Income Tax Fundamentals 2011
ISBN: 9780538469197
29th Edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller
Question Posted: