Matt, Who Is Single, Sells His Principal Residence, Which He

question 270

True/False

Matt, who is single, sells his principal residence, which he has owned and occupied for 5 years, for $435,000. The adjusted basis is $140,000 and the selling expenses are $20,000. Three days after the sale he purchases another residence for $385,000. Matt's recognized gain is $25,000 and his basis for the new residence is $385,000.

---

Definitions:

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or dependence.

Behavioral Effect

The impact of actions or conditions on the behavior of individuals or groups.

Job Dissatisfaction

A negative emotional state resulting from aspects of one's job that do not meet the worker's values or expectations.

Intellectual Functioning

Describes the cognitive capabilities of an individual, including memory, reasoning, problem-solving, and decision-making skills.