Barry Cuda and Allie Gator, a married couple, have lived in their home for the past...

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Barry Cuda and Allie Gator, a married couple, have lived in their home for the past ten years. They purchased the home for $450,000 and just sold it for $850,000. What is the taxable amount of the sale proceeds? O $o O$100,000 $150,000 O $400,000

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Answer 1

Answer #1

Gain from the sale of house = 850,000 - 450,000 = $400,000

However, a gain of up-to $500,000 is excluded from income if the married couple lived in the same home.

So, the taxable income would be $0.

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Answer 2

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