Real Estate Math
A Montana seller is netting $185,000 from the sale of their home. They paid $120,000 for the home 8 years ago and made $15,000 in improvements. They qualify for the $250,000 single taxpayer capital gains exclusion. What is the taxable capital gain?
A$65,000
B$50,000
C$0 (excluded)✓ Correct
D$185,000
Explanation
Adjusted basis = $120,000 + $15,000 = $135,000. Capital gain = $185,000 - $135,000 = $50,000.
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