Question
Mary and Bill Markson purchased a house in 2011. The Marksons rented this property from June 2011 until August 2014 at which time they occupied
Mary and Bill Markson purchased a house in 2011. The Marksons rented this property from June 2011 until August 2014 at which time they occupied the property as their principal residence. The house was acquired for $300,000 and the Marksons claimed $30,000 of cost recovery deductions during the 38 month rental period. The property was sold in March 2020 for $450,000. The property was used for a total of 105 months, with the last 67 months of use as the Marksons principal residence.
What amount of gain will be recognized by the Marksons from the sale of this property?
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