b. Sarah used the property as a vacation home through December 31, 2020. She then used the home as her principal residence from January 1, 2021, until she sold it on January 1, 2024. Note: Round intermediate percentage computation to 2 decimal places.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 88P
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[The following information applies to the questions displayed below.]
Sarah (single) purchased a home on January 1, 2008, for $600,000. She eventually sold the home for $800,000. What
amount of the $200,000 gain on the sale does Sarah recognize in each of the following alternative situations? (Assume
accumulated depreciation on the home is $0 at the time of the sale.)
Note: Leave no answer blank. Enter zero if applicable.
b. Sarah used the property as a vacation home through December 31, 2020. She then used the home as her principal residence from
January 1, 2021, until she sold it on January 1, 2024.
Note: Round intermediate percentage computation to 2 decimal places.
Gain recognized
$ 162,500
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Sarah (single) purchased a home on January 1, 2008, for $600,000. She eventually sold the home for $800,000. What amount of the $200,000 gain on the sale does Sarah recognize in each of the following alternative situations? (Assume accumulated depreciation on the home is $0 at the time of the sale.) Note: Leave no answer blank. Enter zero if applicable. b. Sarah used the property as a vacation home through December 31, 2020. She then used the home as her principal residence from January 1, 2021, until she sold it on January 1, 2024. Note: Round intermediate percentage computation to 2 decimal places. Gain recognized $ 162,500
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