Question

Matt bought a home in 2001 and paid $150,000 for it. He sold the home for $450,000. How much of the profit on his home will be taxable this year?

Answer 1

Answer:

profit to be taxable will be  $300,000

Step-by-step explanation:

Matt home cost = $150,000

Matt sold his home for = $450,000

so,

cost price will  be  $150,000

selling price will be $450,000

         profit = selling price - cost price

         profit  =  $450,000  -  $150,000

         profit  =  $300,000

hence the taxable amount for his home this year will be $300,000