Sam purchased a house in San Francisco, CA, in 1952 for $15,000. He never married but had several children over the years, none of whom he has ever acknowledged. Sam has multiple grandchildren, one of which is named Sam, but he knows none of them. In 2020, Sam sold his house, which was his primary residence since he purchased it, for $5,000,000. He then moved into a retirement community for single octogenarians. How much is Sam's taxable gain from the sale of his house?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 22CE: Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary....
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Sam purchased a house in San Francisco, CA, in 1952 for $15,000. He never married but had several children over the years, none of whom he has ever acknowledged. Sam has multiple grandchildren, one of which is named Sam, but he knows none of them. In 2020, Sam sold his house, which was his primary residence since he purchased it, for $5,000,000. He then moved into a retirement community for single octogenarians. How much is Sam's taxable gain from the sale of his house?

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