Raymond and Susan are married and 55 years old.They sell their personal residence for $850,000 cash.They purchased the house fifteen years ago for $200,000.What is the amount of gain that Raymond and Susan should recognize on the sale?

Question

Quizplus · Accepted Answer

Raymond and Susan can exclude up to $500,000 of gain from the sale of their primary residence because they are married and meet the ownership and use tests. The gain is $650,000 ($850,000 - $200,000), and after the exclusion, they recognize $150,000.

Raymond and Susan Are Married and 55 Years Old