Question
Mr. Lincoln owned two homes from 2017 to 2019. He had purchased Home A in 2005 for $60,000. In 2017, he purchased Home B for
Mr. Lincoln owned two homes from 2017 to 2019. He had purchased Home A in 2005 for $60,000. In 2017, he purchased Home B for $180,000, with the intention of selling Home A immediately. Due to market conditions, mortgage rates, and the asking price, he was unable to sell Home A until 2019. The proceeds received on the sale of Home A were $150,000. In 2020, he was transferred to a different city and sold Home B. He designated 2017 and 2018 to Home A when it was sold. The proceeds received on the sale of Home B were $200,000. What is his taxable capital gain on Home B?
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Taxation Of Individuals And Business Entities 2018 Edition
Authors: Brian C. Spilker, Benjamin C. Ayers, John Robinson, Edmund Outslay, Ronald G. Worsham, John A. Barrick, Connie Weaver
9th Edition
1259711838, 978-1259711831
