Question

6. Donald and Melania are married filing jointly. They sold their home in 2018 and want to know how much capital gains tax they are going to have to pay. What set of information do you need from Donald and Melania to calculate their capital gains tax? Selling price and expenses, any 1031 exchange or business use, adjusted basis and whether, in the last 5 years, one or both spouses owned and resided in the property Selling price and expenses, any 1031 exchange or business use, adjusted basis, whether either spouse served in the US military on extended duty and whether, in the last 5 years, one or both spouses owned and resided in the property

Answer 1

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Answer is highlighted in yellow: Solution: B) and C Answer: Explanation: Because, while determining capital gain tax on sale of home, all the items are considered mentioned in option band c. According to these items, allowed capital gain deduction will be determined and finally tax will be levied on taxable part.