Lana, single and age 55, sold her principal residence for $600,000 after living there for 25 years. Her selling expenses were $15,000, and her adjusted basis in the home was $250,000. What is the maximum gain that Lana must report in connection with the sale of her principal residence? a) $0. b) $85,000. c) $335,000. d) $350,000.
Lana, single and age 55, sold her principal residence for $600,000 after living there for 25 years. Her selling expenses were $15,000, and her adjusted basis in the home was $250,000. What is the maximum gain that Lana must report in connection with the sale of her principal residence? a) $0. b) $85,000. c) $335,000. d) $350,000.
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 40P
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Transcribed Image Text:Lana, single and age 55, sold her principal residence for $600,000
after living there for 25 years. Her selling expenses were $15,000,
and her adjusted basis in the home was $250,000. What is the
maximum gain that Lana must report in connection with the sale of
her principal residence?
a) $0.
b) $85,000.
c) $335,000.
d) $350,000.
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