Question

Matt bought a home in 2001 and paid $150,000 for it. He sold the home for $450,000. How much of the profit on his home will be taxable this year?

Answer 1

profit to be taxable will be $300,000

Explanation:

Matt home cost = $150,000

Matt sold his home for = $450,000

so,

cost price will be $150,000

selling price will be $450,000

profit = selling price - cost price

profit = $450,000 - $150,000

profit = $300,000

hence the taxable amount for his home this year will be $300,000