Real Estate Math
A Colorado seller purchased their home for $285,000 and sold it for $440,000, paying $26,400 in selling costs. What is the seller's gain before capital gains taxes?
AA. $128,600✓ Correct
BB. $155,000
CC. $413,600
DD. $126,600
Explanation
Net proceeds = Sale price - Selling costs = $440,000 - $26,400 = $413,600. Gain = Net proceeds - Purchase price = $413,600 - $285,000 = $128,600.
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