Question
Andy, a single man, buys a house in 2000 for $210,000 as his personal residence, living there 100% of the time. He has not made
Andy, a single man, buys a house in 2000 for $210,000 as his personal residence, living there 100% of the time. He has not made any improvements on the house since then. In 2019, he sells the house for $360,000, and moves to France. How much of a Long-Term Capital Gain did he realize?
a. He did not realize any LTCG on this transaction
b. He realized $75,000 in LTCG on this transaction
c. He realized $150,000 in LTCG on this transaction
How much income tax will Andy have to pay, related to the sale of his house? His
other income puts him in the 25% marginal tax bracket for ordinary income.
a. $ 0 b. $ 11,250 c. $ 18,750 d. $ 22,500 e. $ 37,500
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