How much gain must troy recognize on his home sale in each


Troy (single) purchased a home in Hopkinton, MA, on January 1, 2007, for $265,000. He sold the home on January 1, 2015, for $291,900. How much gain must Troy recognize on his home sale in each of the following alternative situations? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) (Leave no answer blank. Enter zero if applicable.)

a. Troy rented the home out from January 1, 2007, through November 30, 2008. He lived in the home as his principal residence from December 1, 2008, through the date of sale. Assume accumulated depreciation on the home at the time of sale was $10,900.

b. Troy lived in the home as his principal residence from January 1, 2007, through December 31, 2009. He rented the home from January 1, 2010, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $6,900

c. Troy lived in the home as his principal residence from January 1, 2007, through December 31, 2012. He rented out the home from January 1, 2013, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0.

d. Troy rented the home from January 1, 2007, through December 31, 2010. He lived in the home as his principal residence from January 1, 2011, through December 31, 2011. He rented out the home from January 1, 2012, through December 31, 2012, and lived in the home as his principal residence from January 1, 2013, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: How much gain must troy recognize on his home sale in each
Reference No:- TGS02548545

Now Priced at $15 (50% Discount)

Recommended (93%)

Rated (4.5/5)