Question

On February 1, Alan, a single individual, purchased his first personal residence for $400,000. On July 1, Alan sold this residence for $460,000 because he accepted a new job in another state. Consequently, Alan occupied the home for only 150 days. How much gain must Alan recognize

Answer 1

The correct answer is "$8630".

Step-by-step explanation:

Given:

Residence purchased,

= $400,000

Residence sold,

= $460,000

Alan qualifies,

=
`250000* (150)/(730)`

=
`(37500000)/(730)`

=
`51370` ($)

hence,

The gain will be:

=
`60000-51370`

=
`8630` ($)