How much taxable gain does Mike have from the sale

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Problem - Mike, a single taxpayer, purchased a house 20 years ago for $30,000. He sells the house in December 2018 for $350,000. He has always lived in the house.

a. How much taxable gain does Mike have from the sale of his personal residence?

b. Assume Mike married Mary 3 years ago and she has lived in the house since their marriage. If they sell the house in December 2018 for $350,000, what is their taxable gain on a joint tax return?

c. Assume Mike is not married and purchased the house only 1 year ago for $200,000, and he sells the house for $350,000 due to an employment-related move. What is Mike's taxable gain?

Reference no: EM132704357

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