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Craig and Sally, a Married Couple, File a Joint Tax

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Essay

Craig and Sally, a married couple, file a joint tax return and report taxable income (excluding their home sale) of $325,000 for 2018. They purchased their home on December 1, 2016 for $250,000 and have made $100,000 of improvements during the time they owned the home. They sold the home on May 31, 2018 after Craig accepted a job in another state netting $775,000 after the expenses of the sale. What are the tax consequences of this sale?


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