Question
Pedro is the sole owner of his principal residence, which he purchased 10 years ago for $100,000 and occupied ever since. Three years ago, Pedro
Pedro is the sole owner of his principal residence, which he purchased 10 years ago for $100,000 and occupied ever since. Three years ago, Pedro renovated the kitchen at a cost of $30,000. He sells the house for $440,000 and pays $23,000 in commission to the relator. A. What is Pedros realized gain on the sale? ___________ B. Can Pedro use the 121 exclusion? ___________
C. If Pedro can use the 121 exclusion, the maximum eligible amount of 121 exclusion (before any limitations) is ___________ D. What is Pedros recognized gain on the sale? ___________
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