Practice Quiz

Florida Real Estate Exam

Category - Florida

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A man purchased a personal residence in 1987 for $63,000.  In 1988 he remodeled, spending $34,000 for capital improvements.  In 1989 he sold his residence for $174,000 and purchased a replacement residence within a few months for $189,000.  The amount of taxable gain at this time from the sale of the original residence is

  1. $77,000
  2. $1,11,000
  3. $1,51,000
  4. Nothing
Explanation
Answer D - Resident replacement rule allows the seller to purchase another residence of equal or greater value within 24 months of the sale to defer any capital gain.

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