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Mathew Murphy, Single, Sold His Home That He Had Owned

Question 47

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Mathew Murphy, single, sold his home that he had owned for 20 years for $670,000. He purchased it for
$110,000 and made $40,000 of capital improvements on the home during his time of ownership. (a.) How much gain is excluded? How much is recognized?
(b.) If John purchased another home for $420,000, how much is excluded and recognized?

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but as a single individual, he can only ...

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