srusso4554 srusso4554

04-11-2022
Business

Answered

this year, barney and betty sold their home (sales price $900,000; cost $244,000). all closing costs were paid by the buyer. barney and betty owned and lived in their home for 18 months. assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income?.

Answer :

DimahiS DimahiS

14-11-2022

The gain of $656,000 will be included in gross income.

Net income = Sale price - Cost = $900,000 - $244,000 = $656,000

As Barney and Beth have lived in the house for 18 months and not stayed their for atleast two years, so they do not meet the two year ownership and use test.

So, all of the gain on the sale will be included in the gross income.

For more information on gross income, visit:

https://brainly.com/question/15175729

#SPJ4

Answer Link

Other Questions

A lender estimates that the closing costs on a $312,500 home loan will be $12,500. the actual closing costs were 4.25% of the loan amount. determine if the clos

On september 12, vander company sold merchandise in the amount of $5,800 to jepson company, with credit terms of 2/10, n/30. The cost of the items sold is $4,00

Your net income is the same as the amount of your. O A. paycheck OB. taxable income OC. gross income OD. payroll deductions

Justin justice owns 55% of the outstanding stock of rego corporation. During the current year, rego sold a trailer to justin for $10,000. The trailer had an adj

Howe company increased its roi from 20% to 25%. Net operating income and sales remained at their previous levels of rm40,000 and rm1,000,000 respectively. The i

Two years ago lisa smith sold short 100 shares at $50 per share and two years later bought them back for $55 per share. the stock paid a $2.50 dividend each yea

The total cost of an item including sales tax is directly proportional to its price. If the total cost of a item is , what is the total cost on a item?.

Brown is repaying a $1000 loan with five equal payments of principal at the end of each year. interest at an annual effective rate of 10% is paid on the outstan

Monarch company uses a weighted-average perpetual inventory system and has the following purchases and sales: january 1 20 units were purchased at $10 per unit.

Which of these statements is true: 1) It is not uncommon for most of the people in the top 5 percent of income-earners to be 45 years old and up. 2) Three-quar