Section 121 Exclusion. P and Q, who are married, sold their residence of 19 years on February 12, 2021. The house had cost $120,000 and improvements of $22,000 had been made. The house sold for $750,000. Selling costs of $37,500 were incurred and deferred maintenance costs of $4,500 were paid weeks before the sale. P and Q have taxable income not including this gain of $70,000 on their joint return for the year.

Section 121 Exclusion. P and Q, who are married, sold their residence of 19 years on February 12, 2021. The house had cost $120,000 and improvements of $22,000 had been made. The house sold for $750,000. Selling costs of $37,500 were incurred and deferred maintenance costs of $4,500 were paid weeks before the sale. P and Q have taxable income not including this gain of $70,000 on their joint return for the year.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter15: Property Transactions: Nontaxable Exchanges

Section: Chapter Questions

Problem 1CPA

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