Solved

Danielle, a Calendar Year Taxpayer, Lists Her Principal Residence with a Realtor

question 2

Multiple Choice

Danielle, a calendar year taxpayer, lists her principal residence with a realtor on February 7, 2019, enters into a contract to sell on July 12, 2019, and sells (i.e., the closing date) the residence on August 1, 2019.The realized gain on the sale is $225,000.Which date is the appropriate ending date in determining if the residence has been owned and used by the Danielle as the principal residence for at least two years during the prior five-year period?

Definitions:

Adjusted From

A term used to indicate the process of making modifications or changes to financial or other data for the purpose of providing a clearer picture of a situation or condition.

Significant Influence

The ability of a shareholder or an entity to shape the financial and operating policies of another company without having control over it.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders in the form of cash.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues, indicating the company's financial performance over a specific period.