Question
Mitchell and Debbie Dixon, a married couple, sell their personal residence to Sophie. Sophie pays $225,000 and assumes their $70,000 mortgage. To make the sale
Mitchell and Debbie Dixon, a married couple, sell their personal residence to Sophie. Sophie pays $225,000 and assumes their $70,000 mortgage. To make the sale the Downs pay $4000 in commissions and $1.000 in legal costs. The couple has owned and lived in the house for seven years and their tax basis is $125000. What is the amount of gain recognized on the sale?
A. $0
B. $165,000
C. $100,000
D. $170,000
Step by Step Solution
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Step: 1
A 0 Explanation Because as per internal revenue code section 121 a ...
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Advanced Accounting
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
2nd edition
1934319309, 978-1934319307
