Craig and Sally, a married couple in the 35 percent tax bracket who file joint returns, purchased a home on December 1, 2009 for $600,000. They made $100,000 of improvements during the time they owned the home. They sold the home on May 31, 2011 after Craig accepted a job in another state netting $1,250,000 after expenses on the sale. What are the tax consequences of this sale?

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The Answer of Craig and Sally, a married couple in the 35 percent tax bracket who file joint returns, purchased a home on December 1, 2009 for $600,000. They made $100,000 of improvements during the time they owned the home. They sold the home on May 31, 2011 after Craig accepted a job in another state netting $1,250,000 after expenses on the sale. What are the tax consequences of this sale?

Craig and Sally, a Married Couple in the 35 Percent