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Rayna sold her home this year and is preparing her income tax return. She sold the house for $650,000. It was purchased 20 years ago
Rayna sold her home this year and is preparing her income tax return. She sold the house for $650,000. It was purchased 20 years ago (after she was married) for $250,000, and they have used it as their principal residence ever since. Rayna ran a business from the home, using one room regularly and exclusively for business purposes. Over the 20-year holding period, Rayna had claimed $15,000 of depreciation deductions on the home office. The portion of the gain that is subject to income tax is closest to: Select one O A. $0 OB. $15,000 OC. $385,000 OD. $400,000
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