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Hi CPA, I bought my house in 1980 for $75,000. I talked to realtor, and the realtor believes that my husband and I can sale the property for at least $300,000. Supposing that this is the case and we sale the property in May of 2023, what will the tax consequences be? We have lived in the house since we bought it and have put in about $35,000 of improvements that we have documentation for. Also, the realtor estimates about $25,000 of closing costs for the sale. Thanks,

Hi CPA, I bought my house in 1980 for $75,000. I talked to realtor, and the realtor believes that my husband and I can sale the property for at least $300,000. Supposing that this is the case and we sale the property in May of 2023, what will the tax consequences be? We have lived in the house since we bought it and have put in about $35,000 of improvements that we have documentation for. Also, the realtor estimates about $25,000 of closing costs for the sale. Thanks,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi CPA, I bought my house in 1980 for $75,000. I talked to realtor, and the realtor believes that my husband and I can sale the property for at least $300,000. Supposing that this is the case and we sale the property in May of 2023, what will the tax consequences be? We have lived in the house since we bought it and have put in about $35,000 of improvements that we have documentation for. Also, the realtor estimates about $25,000 of closing costs for the sale. Thanks, Client
Transcribed Image Text:Hi CPA, I bought my house in 1980 for $75,000. I talked to realtor, and the realtor believes that my husband and I can sale the property for at least $300,000. Supposing that this is the case and we sale the property in May of 2023, what will the tax consequences be? We have lived in the house since we bought it and have put in about $35,000 of improvements that we have documentation for. Also, the realtor estimates about $25,000 of closing costs for the sale. Thanks, Client
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