Give correct answer 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: The answer here is option b) that is 100,000. The selling price is $405, 000.The cost or…

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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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