Bobby and Sissy got married two and a half years ago. Since that time, they have lived in Bobby's home. Sissy sold her previous home three years ago and excluded her entire gain ($80,000) at that time. Bobby and Sissy decided to move to a bigger home this year. As a result, they sold Bobby's home for $500,000 (original cost $150,000). How much of the gain from the sale is taxable

$100,000

Explanation:

Money they made from the sale = Price they sold the house - Original cost of the house.

Money they made from sell = $500000 - $150000 = $350000

Therefore they made $350000 from the sale.

Under IRC section 121, a taxpayer must own and occupy the property as a principal residence for two of the five years immediately before the sale to gain an exclusion of $250,000 ($500,000 for certain married taxpayers). But Sissy is not eligible for the exclusion, so they are not considered as married taxpayers, therefore they have an exclusion of $250000.

The gain payable = $350000 - $250000 = $100000

answer; dogs;

answer the law of increasing costs;