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

question 74

Essay

Craig and Sally, a married couple, file a joint tax return and report taxable income (excluding their home sale) of $325,000 for 2017. They purchased their home on December 1, 2015 for $250,000 and have made $100,000 of improvements during the time they owned the home. They sold the home on May 31, 2017 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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Definitions:

Manifest Function

The explicit, intended goals or consequences of social processes or institutions.

Latent Function

refers to the unintended or unrecognized positive consequences of a social process or structure.

Primary Function

The main or most important purpose or operation of an object, system, or organization.

Dysfunction

An element or process of a society that may disrupt the social system or reduce its stability.