None Q436:-Simonne, a single taxpayer, bought her home in La Jolla 25years ago for $55,000. She has lived continuously in the home sinceshe purchased it. In the current year, she sells her home for$405,000. What is Simonne's taxable gain on the sale?a. $90,000b. $100,000c. $350,000d. $0

Step 1: Introduction to the Taxable gainTaxes on the taxable gain on the sale of a personal dwelling…

Answered: Q436:-Simonne, a single taxpayer,…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 10MCQ

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LO2 Fatima inherits a rental property with a fair market value of 90,000 from her aunt on April 30. On May 15, the executor of the estate sends her a check for 7,000. A letter accompanying the check states that the 7,000 comes from the rent received on the property since her aunts death. Fatima receives 6,600 in rent on the property during the remainder of the year and pays allow able expenses of 4,200 on the property. How much gross income does Fatima have from these transactions?
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Q436:-Simonne, a single taxpayer, bought her home in La Jolla 25 years ago for $55,000. She has lived continuously in the home since she purchased it. In the current year, she sells her home for $405,000. What is Simonne's taxable gain on the sale? a. $90,000 b. $100,000 c. $350,000 d. $0