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.

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Definitions:

Type B Personality

A personality type characterized by a relatively relaxed, patient, and easy-going approach to life, unlike the more tense and hurried Type A personality.

Time Urgency

The feeling of being under constant pressure to act quickly or complete tasks in a limited timeframe, often associated with stress.

Competitive

Characterized by or involving competition; striving to gain or win something by defeating or establishing superiority over others.

Hardy Personality

A personality trait characterized by resilience and the capability to thrive in the face of stress and adversity, linked to positive coping mechanisms and attitudes.