Robert, who is single, recently sold his home in 2015 for $375,000. He has lived there since he bought the house in 1990 for $100,000. How should this transaction be reported on his tax return? a. He will report an ordinary gain of $275,000. b. He will report a long term capital gain of $275,000. c. He will report a long term capital gain of $25,000. d. This transaction does not have to be reported because it involves the sale of his residence.
Robert, who is single, recently sold his home in 2015 for $375,000. He has lived there since he bought the house in 1990 for $100,000. How should this transaction be reported on his tax return? a. He will report an ordinary gain of $275,000. b. He will report a long term capital gain of $275,000. c. He will report a long term capital gain of $25,000. d. This transaction does not have to be reported because it involves the sale of his residence.
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 70P
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Answer? ? General Accounting question
Transcribed Image Text:Robert, who is single, recently sold his home in 2015 for $375,000. He
has lived there since he bought the house in 1990 for $100,000. How
should this transaction be reported on his tax return?
a. He will report an ordinary gain of $275,000.
b. He will report a long term capital gain of $275,000.
c. He will report a long term capital gain of $25,000.
d. This transaction does not have to be reported because it involves the
sale of his residence.
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