Leticia and Stephanie Sims purchased a home in Spokane, Washington, for $500,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of year 5, when they sold the home for $847,500. Note: Leave no answer blank. Enter zero if applicable. Assume the original facts, except that Stephanie moves in with Leticia on March 1 of year 3 and the couple is married on March 1 of year 4. Under state law, the couple jointly owns Leticia's home beginning on the date they are married. On December 1 of year 3, Stephanie sells her home that she lived in before she moved in with Leticia. She excludes the entire $97,500 gain on the sale on her individual year 3 tax return. What amount of gain must the couple recognize on the sale in June of year 5?
Leticia and Stephanie Sims purchased a home in Spokane, Washington, for $500,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of year 5, when they sold the home for $847,500. Note: Leave no answer blank. Enter zero if applicable. Assume the original facts, except that Stephanie moves in with Leticia on March 1 of year 3 and the couple is married on March 1 of year 4. Under state law, the couple jointly owns Leticia's home beginning on the date they are married. On December 1 of year 3, Stephanie sells her home that she lived in before she moved in with Leticia. She excludes the entire $97,500 gain on the sale on her individual year 3 tax return. What amount of gain must the couple recognize on the sale in June of year 5?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Leticia and Stephanie Sims purchased a home in Spokane, Washington, for $500,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of year 5, when they sold the home for $847,500.
Note: Leave no answer blank. Enter zero if applicable.
- Assume the original facts, except that Stephanie moves in with Leticia on March 1 of year 3 and the couple is married on March 1 of year 4. Under state law, the couple jointly owns Leticia's home beginning on the date they are married. On December 1 of year 3, Stephanie sells her home that she lived in before she moved in with Leticia. She excludes the entire $97,500 gain on the sale on her individual year 3 tax return. What amount of gain must the couple recognize on the sale in June of year 5?
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