Darren (Single)purchased a Home on January 1, 2016, for $582,000

question 53

Essay

Darren (single)purchased a home on January 1, 2016, for $582,000. Darren lived in the home as his primary residence until January 1, 2018, when he began using the home as a vacation home. He used the home as a vacation home until January 1, 2019. (He used a different home as his primary residence from January 1, 2018, to January 1, 2019.)On January 1, 2019, Darren moved back into the home and used it as his primary residence until January 1, 2020, when he sold the home for $727,500. What amount of the $145,500 gain Darren realized on the sale must he recognize for tax purposes in 2020?

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Definitions:

Sequential Search

A searching algorithm that checks each element in a list one by one until the desired element is found or the list ends.

Unordered List

In HTML, a list that displays items in bullet points, indicating no particular order, using the <ul> tag.

Key Comparisons

Operations in algorithms and data structures where the values of keys are compared to find, insert, or delete elements.

Binary Search

A method that quickly locates an element within a sorted collection by consistently halving the search range.