In October of 2016, Tommy and Tammy, husband and wife, sold their (only) residen
ID: 2394124 • Letter: I
Question
In October of 2016, Tommy and Tammy, husband and wife, sold their (only) residence that they had purchased in 1999 for $1,000,000 paying $300,000 in cash with a $100,000 mortgage from ABC Bank. They lived there the entire time they owned the home, and they made repairs to the electric and plumbing during their 10-year ownership totaling $40,000. They moved into a smaller home that cost them $250,000. How much gain or loss is recognized?
a. $700,000.
b. $600,000.
c. $450,000.
d. $60,000.
e. None of the above.
My answer is (e) none of the above. if this is not correct can you explain?
Explanation / Answer
Your answer is Correct i.e Option no (e) as the answer is neither
a. $700,000.
b. $600,000.
c. $450,000.
d. $60,000.
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