Ian and Mia Married in Early 2018 and Purchased a New

question 17

Multiple Choice

Ian and Mia married in early 2018 and purchased a new home together. Each owned and lived in separate residences prior to the marriage. Ian purchased his residence 5 years ago for $190,000 and he added a master bedroom and bathroom addition at a cost of $40,000. Mia purchased her home three years ago for $135,000. In late 2018, Ian sold his residence for $510,000 and paid a sales commission of $8,000. After paying off his $80,000 mortgage balance, he received the remaining cash proceeds of $422,000. In late 2018 Mia sold her residence for $190,000 and paid a sales commission of $2,000. She had paid off her mortgage so she received $188,000 cash from the sale. If Ian and Mia file a joint tax return for 2018, how much gain do they recognize on their 2018 joint tax return from the sales of their previous homes?

• A) 0
• B) $22,000
• C) $53,000
• D) $84,000

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Definitions:

Prosocial Behaviors

Voluntary actions that are intended to help or benefit another person or group of people without expecting anything in return.

Maladaptive Behaviors

Actions or tendencies that inhibit an individual's ability to adjust healthily to particular situations, often resulting in emotional distress or dysfunction.

Temporal Proximity

The closeness or nearness in time between two events or phenomena.

Antecedents

Events or circumstances that precede and influence behaviors, often analyzed in behavioral therapy to understand and modify undesirable behaviors.