Facts: Cheryl bought a home on April 1, 2023 for $370,000. The home was her principal residence until November 30, 2023 when she sold the home due to a job change that required her to move to another state (210 miles away). The home sold for $465,000. Cheryl is single and this was the first home she's ever owned. She made no significant improvements to the home while living there. Requirements: 1. Research the following issue: What is Cheryl's realized gain on the home sale? How much of the gain, if any, must be recognized on her 2023 tax return?
Facts: Cheryl bought a home on April 1, 2023 for $370,000. The home was her principal residence until November 30, 2023 when she sold the home due to a job change that required her to move to another state (210 miles away). The home sold for $465,000. Cheryl is single and this was the first home she's ever owned. She made no significant improvements to the home while living there. Requirements: 1. Research the following issue: What is Cheryl's realized gain on the home sale? How much of the gain, if any, must be recognized on her 2023 tax return?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Facts: Cheryl bought a home on April 1, 2023 for $370,000. The home was her principal residence until November 30, 2023 when she sold the home due to a job
change that required her to move to another state (210 miles away). The home sold for $465,000. Cheryl is single and this was the first home she's ever owned.
She made no significant improvements to the home while living there.
Requirements:
1. Research the following issue: What is Cheryl's realized gain on the home sale? How much of the gain, if any, must be recognized on her 2023 tax return?
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