12 Ethan (single) purchased his home on July 1, 2008. He lived in the home as his principal residence until July 1, 2015 when he moved out of the home and rented it out until July 1, 2017 when he moved back into the home. On July 1, 2018 he sold the home and realized a $212,500 gain. What amount of the gain is Ethan allowed to exclude from his 2018 gross income? Multiple Choice $0. $170,000. $202,500. $212,500.
12 Ethan (single) purchased his home on July 1, 2008. He lived in the home as his principal residence until July 1, 2015 when he moved out of the home and rented it out until July 1, 2017 when he moved back into the home. On July 1, 2018 he sold the home and realized a $212,500 gain. What amount of the gain is Ethan allowed to exclude from his 2018 gross income? Multiple Choice $0. $170,000. $202,500. $212,500.
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 1CPA
Related questions
Topic Video
Question
Hello, I need help solving this accounting problem.
Transcribed Image Text:12
Ethan (single) purchased his home on July 1, 2008. He lived in the home as his principal residence until July 1, 2015 when he moved out of the home and
rented it out until July 1, 2017 when he moved back into the home. On July 1, 2018 he sold the home and realized a $212,500 gain. What amount of the
gain is Ethan allowed to exclude from his 2018 gross income?
Multiple Choice
$0.
$170,000.
$202,500.
$212,500.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT