Heidi (Single)purchased a Home on January 1,2007 for $400,000

question 85

Essay

Heidi (single)purchased a home on January 1,2007 for $400,000.She lived in the home as her primary residence until January 1,2015 when she began using the home as a vacation home.She used the home as a vacation home until January 1,2016 (she used a different home as her primary residence from January 1,2015 to January 1,2016).On January 1,2016,Heidi moved back into the home and used it as her primary residence until January 1,2017 when she sold the home for $700,000.What amount of the $300,000 gain Heidi realized on the sale must she recognize for tax purposes in 2017?

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Definitions:

Circadian Rhythms

Biological processes that display an endogenous, entrainable oscillation of about 24 hours, influencing sleep-wake cycles, hormone release, and other bodily functions.

Regular Body Cycles

Biological rhythms or cycles, such as circadian rhythms, that regulate physiological processes within the body.

Stage 4 Sleep

A deep phase of sleep in the sleep cycle, associated with delta brain waves and considered critical for physical restoration.

Consciousness

The state of being awake and aware of one's surroundings, thoughts, and experiences.