Liz, Age 55, Sells Her Principal Residence for $600,000

question 162

Essay

Liz, age 55, sells her principal residence for $600,000. She purchased it 22 years ago for $175,000. Selling expenses are $30,000 and repair expenses to get the house in a marketable condition to sell are $15,000. Liz's objective is to minimize the taxes she must pay associated with the sale. Calculate her recognized gain.

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Definitions:

Positive Consequence

A beneficial result or effect of an action or condition, often used to reinforce desired behaviors in various contexts, such as learning or behavior modification.

Time Out

A disciplinary technique used to remove a child from an environment where inappropriate behavior has occurred, to encourage self-soothing and reflection.

Systematic Desensitization

is a behavioral therapy technique used to reduce anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Progressive Relaxation

A technique involving the tensing and relaxing of muscle groups in sequence to achieve physical and mental relaxation.