Nelson Whiting (Single) Purchased a Home in Denver, Colorado for $300,000

question 64

Essay

Nelson Whiting (single) purchased a home in Denver, Colorado for $300,000. He moved into the home on July 1 of year 1. He lived in the home as his primary residence until December 1, year 2 when he sold the home for $450,000. Nelson sold the home because he needed to move because he was changing jobs and his new job was located several hundred miles away. What amount of gain must Nelson recognize on the home sale in year 2?

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Definitions:

Nativism

The theory that certain skills or abilities are "native" or hardwired into the brain at birth.

Constitutional Factors

Physical and genetic characteristics of an individual that influence his or her biological functioning.

Acquisition

The act of gaining possession or knowledge of something.