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15-27 Section 121 Exclusion. P and Q, who are married, sold their residence of 19 years on February 12, 2018. The house had c

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Answer #1

a) gain is 750000-37500-4500-120000-22000= 566000

b) chargeable gain is 566000

jointly owned property so P and Q each will each be assessed on 283000 (566000*.5)

annual exempt amount is 11100

283000-11100 = 271900

tax charge is 271900*.28= 76132

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