The following information pertains to the sale of Al and Beth Oran's principal residence:
- Date of sale: February 2015
- Date of purchase: October 1998
- Net sales price: $760,000
- Adjusted basis: $170,000
Al and Beth owned their home jointly and had occupied it as their principal residence since acquiring the home in 1998. In June 2015, the Orans bought a condo for $190,000 to be used as their principal residence. What amount of gain must the Orans recognize on their 2015 joint return from the sales of their residence?
a. $90,000
b. $150,000
c. $340,000
d. $400,000
Answer: A
CPA Exam
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