Question
Sharon bought a house in 2003 for $500,000 and rented it to a third party untilMay 2014. The following month she moved into the house
Sharon bought a house in 2003 for $500,000 and rented it to a third party untilMay 2014. The following month she moved into the house and filed a no-change-of- use-election under ITA 45(3). In, 2021 Sharon sold the house for $950,000.
- What is the proceeds of disposition?
- What is the ACB?
- Therefore the Capital Gain is:
- How many years was actually inhabited by the owner?
- If she filed an election designating the house as her principal residence for the additional 4 years, then the total number of years of principal residence is:
- What would be the principal residence exemption portion of the capital gain to be reported?
- What would be the taxable capital gain that would be reported?
- If she chose to ignore or forgot to apply the special election, what would be her taxable capital gain?
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Horngrens Accounting The Financial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
10th Edition
0133117561, 978-0133117561
