Question
All tax calculations should be based on the 2020 Tax Rate Schedules. Figures should be rounded to the nearest dollar. Percentages should be rounded to
All tax calculations should be based on the 2020 Tax Rate Schedules. Figures should be rounded to the nearest dollar. Percentages should be rounded to the nearest whole percentage (e.g., 32% instead of 32.2%)
Sale of principal residence. Felicia files her tax returns as head-of-household. For many years, she had lived in an apartment that she rented. She purchased a house on August 1 of last year, and lived in it as her principal residence. However, because the house did not have enough closet space for all of her clothes, Felicia had to sell the house on August 1 of this year and move to a more spacious condominium. She bought the house for $430,000 and sold it for $730,000. How much capital gain does Felicia have to report on this sale?
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