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:

Precordial Electrode

Electrodes placed on the chest during an electrocardiogram (ECG) to record electrical activity of the heart.

Intercostal Space

The anatomical area between two ribs, which contains muscles, nerves, and blood vessels.

Sternum

A bone that forms the front and middle portion of the rib cage; also called the breastbone or breast plate.

AV Node

The atrioventricular node, a part of the heart's electrical system that acts as a gatekeeper, slowing the electrical current before it passes from the atria to the ventricles.