Liz, age 55, sells her principal residence for $600,000. She purchased it 22 years ago for $175,000. Selling expenses are $30,000 and repair expenses to get the house in a marketable condition to sell are $15,000. Liz's objective is to minimize the taxes she must pay associated with the sale. Calculate her recognized gain.

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The Answer of Liz, age 55, sells her principal residence for $600,000. She purchased it 22 years ago for $175,000. Selling expenses are $30,000 and repair expenses to get the house in a marketable condition to sell are $15,000. Liz's objective is to minimize the taxes she must pay associated with the sale. Calculate her recognized gain.

Liz, Age 55, Sells Her Principal Residence for $600,000