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andreyandreev [35.5K]
3 years ago
5

Baker, an unmarried individual, sold a personal residence, which has an adjusted basis of $70,000, for $165,000. baker owned and

lived in the residence for seven years. selling expenses were $10,000. four weeks prior to the sale, baker paid a handyman $1,000 to paint and fix up the residence. what is the amount of baker's recognized gain?
Business
1 answer:
Stella [2.4K]3 years ago
7 0

The answer is $0.

<span>$0 is the bakers recognized gain because a taxpayer is allowed to the exclusion of up to $250,000 and $500,000 for tax payers who are married, of capital gain attributed to the sale of<span> a personal residence. One requirement a baker met here for exclusion that tax payer must occupy the residence for two to five years before sale.</span></span>

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Find out more on crowding out at brainly.com/question/995089.

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Read 2 more answers
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