Question

Ms. Jorgen recently moved from Boston to Pittsburgh to take a job with OP Inc. She sold her home in Boston and OP paid the $14,500 realtor's commission on the sale. The amount that Ms. Jorgen will report on her income tax return as income from this payment is_____________.

Answer 1

Answer:

Ms. Jorgen will report only the Taxable gain and losses from the purchase and will not report the commission paid for by OP Inc

Explanation:

Gross Income Definition is total amount( the amount is $14500), in cash(the $14500 is cash) or otherwise ( asset value), Accrued to, received by or in favor of ( the amount of $14500 is in paid in favor of her) and must not be of a capital nature ( the commission is of a capital nature. Therefore it will not be reported as income.