Kitty, Who Is Single, Sells Her Principal Residence, Which She

question 129

True/False

Kitty, who is single, sells her principal residence, which she has owned and occupied for 8 years, for $375,000. The adjusted basis is $64,000, selling expenses are $22,000, and repairs to make the house more marketable are $7,000. Her recognized gain is $32,000.

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Definitions:

Within Days

A phrase indicating that a specific action or event is to occur within a defined number of days from a certain point in time.

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.

Lease Agreement

A legal contract between a landlord and tenant, outlining the terms under which the tenant can rent property from the landlord.

Dissociates

In a legal context, refers to a partner's withdrawal or a member's departure from a partnership or an association, affecting the entity's composition.