Raymond and Susan are married and 55 years old. They sell their personal residence for $850,000...
Raymond and Susan are married and 55 years old. They sell their personal residence for $850,000 cash. They purchased the house fifteen years ago for $200,000. What is the amount of gain that Raymond and Susan should recognize on the sale?
Homework Answers
$150,000 is the amount of gain that Raymond and Susan should recognize on the sale
$850,000 - $200,000 basis = $650,000 gain, $500,000 of which is excluded;
$150,000 is recognized.
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