Business, 09.03.2020 23:55 heyheyheyhey3

Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $542,500. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of year 5, when they sold the home for $700,000.
Assume the original facts, except that Steve and Stephanie live in the home until January 1 of year 3, when they purchase a new home and rent out the original home. They finally sell the original home on June 30 of year 5 for $700,000.
Ignoring any issues relating to depreciation taken on the home while it is being rented, what amount of realized gain on the sale of the home is the Pratts required to include in taxable income?

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Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $542,500. They moved into the...

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