Darren (Single) Purchased a Home on January 1, 2012 for $400,000

question 22

Short Answer

Darren (single) purchased a home on January 1, 2012 for $400,000. Darren lived in the home as his primary residence until January 1, 2014 when he began using the home as a vacation home. He used the home as a vacation home until January 1 2015 (he used a different home as his primary residence from January 1, 2014 to January 1, 2015). On January 1, 2015, Darren moved back into the home and used it as his primary residence until January 1, 2016 when he sold the home for $500,000. What amount of the $100,000 gain Darren realized on the sale must he recognize for tax purposes in 2016?

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Definitions:

Discrepancy

A difference or inconsistency between two or more elements, such as expectations and reality.

Longitudinal Research

A research design that involves repeated observations of the same variables (e.g., individuals) over short or long periods of time.

Marital Relationships

Marital relationships refer to the bond and legal partnership between individuals in marriage, encompassing aspects of love, support, and commitment.

Relationship Ratings

A way of evaluating personal connections or interactions between individuals, often used in psychological studies to measure satisfaction or quality of relationships.