Question

When Reba lists the Chandlers’ home in the MLS, she will categorize it as a ______. a. Retro-commissioned structure b. Townhome c. Converted structure d. Single-family home 2. If the Chandlers sell the home at this time, is it likely that they will have a capital gains tax obligation? a. Yes, if they sell the home for more than $500,000. b. Yes, if they sell the home for a net capital gain. c. No, as long as the gain does not exceed $500,000, assuming that they are filing a joint return. d. No, because the sale of a primary residence is not subject to capital gains tax. Chapter 4 Home Ownership

Answer 1

When Reba lists the Chandlers’ home in the MLS, she will categorize it as a townhome.

If the Chandlers sell the home at this time, is it likely that they will have a capital gains tax obligation? No, as long as the gain does not exceed $500,000, assuming that they are filing a joint return.