George and Barbara moved from Washington, D.C. to Texas where they purchased a new house for $1,000,000. They had lived in their old house for 8 years before selling it for $800,000. They had purchased it for $400,000. What is George and Barbara's taxable gain and what is their basis in their new house

Respuesta :

Answer:George and barbara's taxable gain=$400000

Explanation: taxable gain= sale price - purchase price

Sale price price = $800,000

Purchase price = $400,000

Taxable gain= $800000-$400000=$400000

Taxable gain for old house =$400000

Selling price for the new house(basis) = $1000000+$400000=$1400000

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