Jerry bought his home 15 years ago for $60,000. three years ago, jerry married debbie and she moved into the same house and has lived there since. if they sell jerry's house in the current year for $340,000, what is their taxable gain on a joint tax return?
$0
$30,000
$280,000
$155,000

The correct answer to the following question is option A) $0

Explanation:

Given information  -

House bought 15 years ago by Jerry at - $60,000

Jerry and her wife Debbie sold the house for - $340,000

The realized gain for Jerry and Debbie on the sale of house - $280,000 ( $340,000 - $60,000 )

Jerry and Debbie wants to file joint tax return , and they are allowed an exclusion up to $500,000. Which means if the amount of gain doesn't exceed $500,000, then they won't have to pay tax on this gain.

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