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MrAnd MrsAlvarez Paid $130,000 for Their Home 30 Years Ago

Question 82

Essay

Mr.and Mrs.Alvarez paid $130,000 for their home 30 years ago.They recently sold this home and moved into a rented apartment.Describe the tax consequences of the sale assuming that the amount realized was:
a.$125,000
b.$450,000
c.$850,000

Correct Answer:

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a.($5,000)loss realized; $0 recognized.b...

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