Alex bought his principal residence for $175000 on June 5, 2016. He sold it on July...
Alex bought his principal residence for $175000 on June 5, 2016. He sold it on July 18, 2017 for $205000. Assuming no adjustments to basis, what is the amount and character of Alex's gain?
Homework Answers
The amount of gain = $205,000-$175,000 = $30,000.
The entire gain is taxable as the principal residence has been held for less than 2 years.
The gain is 'long term' as it is held for more than a year.
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