Kevin purchased a house 20 years ago for $100,000 and he has always lived in the house. Three years ago Kevin married Karen, and she has lived in the house since their marriage. If they sell Kevins house in December 2019 for $425,000, what is their taxable gain on a joint tax return?

a. $0

b. $75,000

c. $125,000

d. $250,000

Gene, a single taxpayer, purchased a house 18 months ago for $350,000. If Gene sells his house due to unforeseen circumstances for $550,000 after living in it for a full 18 months, what is his taxable gain?

a. $0

b. $12,500

c. $50,000

d. $200,000

Which of the following is true about the rental of real estate?

a. Depreciation and maintenance expenses for an apartment complex are deductible.

b. A vacation home is a home that is rented for 15 days or more and is used by the taxpayer for personal use for more than the greater of 14 days or 10 percent of the days it is rented for fair value during the year.

c. If a home is rented for less than 15 days a year, the rent is not taxable.

d. Repairs on rental property are deductible by the taxpayer.

e. All of the above.

John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56 days and used the house for 14 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included $5,000 in mortgage interest, $850 in property taxes, $900 for utilities and maintenance, and $3,500 of depreciation. What is Johns deductible rental loss, before considering the passive loss limitations?

a. $200

b. $875

c. $2,500

d. $3,200

e. $0

Helen, a single taxpayer, has modified adjusted gross income (before passive losses) of $126,000. During the tax year, Helens rental house generated a loss of $15,000. Assuming Helen is actively involved in the management of the property, what is the amount of Helens passive loss deduction from the rental house?

a. $0

b. $3,000

c. $10,000

d. $12,000

e. $15,000

Which of the following is not classified as portfolio income for tax purposes?

a. Interest income on savings accounts

b. Dividends paid from a credit union

c. Net rental income from real estate partnership

d. Dividend income from stock

e. All of the above are classified as portfolio income