Eric and Faye, Who Are Married, Jointly Own a House

question 251

Multiple Choice

Eric and Faye, who are married, jointly own a house in which they have resided for the past 17 years. They sell the house for $375,000 with realtor's fees of $10,000. Their adjusted basis for the house is $80,000. Since they are in their retirement years, they plan on moving around the country and renting. What is their recognized gain on the sale of the residence if they use the § 121 exclusion (exclusion of gain on sale of principal residence) and if they elect to forgo the § 121 exclusion? With exclusion Elect to forgo

• A) $0 $0
• B) $35,000 $35,000
• C) $0 $285,000
• D) $35,000 $285,000
• E) $285,000 $225,000

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Definitions:

Inclusion of Education

The practice of incorporating educational elements, values, or practices into broader spheres or systems.

Regression Model

A statistical method for estimating the relationships among variables, often used to predict a response variable's values from one or more predictor variables.

Regression Degrees

In statistics, it refers to the number of independent variables in a regression analysis, helping to determine the model's complexity.

Degrees of Freedom

Degrees of freedom typically refer to the number of independent pieces of information available to estimate another piece of information or the parameters of a population.