Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 4

Several years ago, Agnes and Wyman Booth bought a home for $200,000. They lived in the home for 10 years and then moved into an apartment. Unable to immediately sell the home, starting in 2010 they rented it for two years, earning $24,000 in rents, and taking $14,000 in depreciation. After the two rental years, the Booths exchanged the house for $30,000 cash and a duplex worth $300,000. The Booths will hold the duplex as rental property. How much taxable income do the Booths have from the exchange