Darren (Single) Purchased a Home on January 1, 2010 for $400,000

question 5

Short Answer

Darren (single) purchased a home on January 1, 2010 for $400,000. Darren lived in the home as his primary residence until January 1, 2012 when he began using the home as a vacation home. He used the home as a vacation home until January 1 2013 (he used a different home as his primary residence from January 1, 2012 to January 1, 2013). On January 1, 2013, Darren moved back into the home and used it as his primary residence until January 1, 2014 when he sold the home for $500,000. What amount of the $100,000 gain Darren realized on the sale must he recognize for tax purposes in 2014?

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Definitions:

Sociocultural

Pertains to the interaction of social and cultural elements in society.

Situational

Pertaining to or determined by external conditions or situations, often implying a temporary state.

Maturational

Pertaining to the process of maturing or reaching full development.

Accreditation Inspection

Accreditation Inspection involves a thorough review by a recognized authority to ensure that a healthcare facility meets established standards of quality and safety.