Rose and Richard purchased a home in 2022. Sadly Rose divorced Richard leaving Richard with the house. He can't really afford the house alone so he sells it in 2023 for $600,000. The house was Richard's primary residence for 292 days over the past 2 years. The basis is $325,000. Assume no prior 121 exclusion has been used. How much will Richard's AGI increase due to selling the house? Hint: use 730 days as a replacement for 24 months when calculating the exclusion.

Rose and Richard purchased a home in 2022. Sadly Rose divorced Richard leaving Richard with the house. He can't really afford the house alone so he sells it in 2023 for $600,000. The house was Richard's primary residence for 292 days over the past 2 years. The basis is $325,000. Assume no prior 121 exclusion has been used. How much will Richard's AGI increase due to selling the house? Hint: use 730 days as a replacement for 24 months when calculating the exclusion.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 16DQ

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