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In 2010, Priscilla and John sold a house to Olga for $900,000. Prior the 2010 sale, neither Priscilla nor John had ever excluded a gain from the sale of a personal residence. Priscilla and John had lived in the house for the last eleven years and used it exclusively for personal purposes. Priscilla and John had purchased the house for $200,000. Priscilla and John started living in the house immediately after purchasing it and never made any capital improvements to the house or took any depreciation (or other deductions) against it. Because of the slow market, there were no selling expenses. How much of a gain did Priscilla and John realize on the sale to Olga (assume that Priscilla and John are married and file a joint return)?

Accounting Basics, Accounting

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  • Reference No.:- M974033

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