Kevin purchased a house 20 years ago for $100,000 and he has always lived in the house. Three years ago Kevin married Karen, and she has lived in the house since their marriage. If they sell Kevin's house in December 2019 for $425,000, what is their taxable gain on a joint tax return? a. $0 b. $75,000 c. $125,000 d. $250,000

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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Kevin purchased a house 20 years ago for $100,000 and he has always lived
in the house. Three years ago Kevin married Karen, and she has lived in the
house since their marriage. If they sell Kevin's house in December 2019 for
$425,000, what is their taxable gain on a joint tax return?
a. $0
b. $75,000
c. $125,000
d. $250,000
Transcribed Image Text:Kevin purchased a house 20 years ago for $100,000 and he has always lived in the house. Three years ago Kevin married Karen, and she has lived in the house since their marriage. If they sell Kevin's house in December 2019 for $425,000, what is their taxable gain on a joint tax return? a. $0 b. $75,000 c. $125,000 d. $250,000
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