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this year, barney and betty sold their home (sales price $900,000; cost $244,000). all closing costs were paid by the buyer. barney and betty owned and lived in their home for 18 months. assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income?.

Sagot :

The gain of $656,000 will be included in gross income.

Net income = Sale price - Cost = $900,000 - $244,000 = $656,000

As Barney and Beth have lived in the house for 18 months and not stayed their for atleast two years, so they do not meet the two year ownership and use test.

So, all of the gain on the sale will be included in the gross income.

For more information on gross income, visit:

https://brainly.com/question/15175729

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