Larry owned and lived in a home for five years before marrying Darlene. Larry and Darlene lived in the home for one year before selling it at a $800,000 gain. Larry was the sole owner of the residence until it was sold. How much of the gain may Larry and Darlene exclude

Question

24-11-2021
Business

contestada

Larry owned and lived in a home for five years before marrying Darlene. Larry and Darlene lived in the home for one year before selling it at a $800,000 gain. Larry was the sole owner of the residence until it was sold. How much of the gain may Larry and Darlene exclude

Respuesta :

Otras preguntas

How did Brown v. Board of Education challenge discrimination in schools?

Certain soils in the Midwest have very even concentrations of minerals and nutrients that are required for the growth of a small shrub. How would you expect ind

Find the area of an equilateral triangle (regular 3-gon) with the given measurement. 9-inch perimeter A = sq. in.

(3 × 6) + 4 = 8 + 4 + 32 a. false, (3 × 6) + 4 = 8 + 4 + 32 c. false, (3 × 6) + 4 > 8 + 4 + 32 b. true d. fals

Parker, Inc. had a beginning balance in its Retained Earnings account of $386,400. During the year, the company declared and paid a $4,860 dividend and, at the

The design of a machine element calls for a 40-mm-outer-diameter shaft to transmit 50 kW. If the speed of rotation is 730 rpm, determine (a) the maximum shear s

Evaluate 19-a if a=11.5

Greg drove at a constant speed in a rainstorm for 228 miles. He took a break, and the rain stopped He then drove 205 miles at a speed that was 3 miles per ho

What do I need to do ?

in how many ways can 8 people be seated in a row if there are 4 men and 4 women and no 2 men or 2 women can sit next to each other?

anthougo anthougo · Answer 1 · 2021-12-07T10:07:25+01:00

The amount of the $800,000 capital gain that Larry and Darlene can exclude is b. $250,000.

Darlene did not meet the two-year use since she only lived in the home for one year before it was sold. Larry and Darlene did not meet the two-year use test that would have qualified them to exclude $500,000 as a married couple.

Question Options:

a. $0

b. $250,000

c. $500,000

d. $600,000

Thus, Larry and Darlene can only exclude $250,000 instead of $500,000 from their taxable capital gain. Therefore, the taxable gain on the sale of their residence is $550,000 ($800,000 - $250,000).

Learn more: https://brainly.com/question/13574856