Troy (single) purchased a home in Hopkinton, MA, on January 1, 2007, for $215,000. He sold...

d. Troy rented the home from January 1, 2007, through December 31, 2014. He lived in the home as his principal residence from January 1, 2015, through December 31, 2015. He rented out the home from January 1, 2016, through December 31, 2016, and lived in the home as his principal residence from January 1, 2017, through the date of the sale. Assume accumulated depreciation on the home at the time of sale was $0.

The Answer isn't $27,900

Recognized gain

Solutions

Expert Solution

D. Total Period 12 years

Peroid of stay one year(need to deduct from gain as used for self)

1/12*($242,000-$215,000)

=$2,250

Gain($242,000-$215,000)

= $27,000-$2,250

=$24,750

ekkarill92 answered 2 years ago

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