Hannah,a single taxpayer,sold her primary residence on January 1,2017.Her total realized gain is $210,000.The house was acquired on January 1,2007,and rented to tenants until December 31,2013.Hannah moved in on January 1,2014,and used the house as her principal residence until the sale.During the rental period,$30,000 of depreciation was deducted.Due to the sale of the house in 2017,Hannah will recognize a gain of
A)$147,000.
B)$30,000.
C)$90,000.
D)$120,000.

Question

Quizplus · Accepted Answer

D)Of the $210,000 total gain,the $30,000 of prior depreciation must be recognized.The $180,000 balance of the gain will be divided into:
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Hannah,a Single Taxpayer,sold Her Primary Residence on January 1,2017