Overview:
This course highlights the tax rules that apply when you sell your main home.
Prerequisite: None
Course level: Basic
Advanced preparation: None
Teaching method: Online study
Recommended hours: 4
Summary of Contents:
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Section 1 - Main Home/Figuring Your Gain or Loss
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Section 2 - Determining Basis
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Section 3 - Excluding the Gain
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Section 4 - Business Use or Rental of Home/Reporting the Sale
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Section 5 - Special Situations/Deducting Taxes
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Section 6 - Recapturing a Federal Mortgage Subsidy
Sample Exam Questions:
1. Some examples of closing costs that can be added to the buyer's basis include:
a. fire insurance premiums and credit report processing fees
b. legal fees, utility installation charges, and property taxes
c. loan assumption fees and appraisal fees
d. refinancing fees and rent on the house before the sale
2. Greg owned his home until September 30th and then sold it to Brian. Brian paid all the real estate taxes for the calendar year when he bought Greg's house. The total was $2,000. That's okay, because Brain can:
a. sue Greg for reimbursement later.
b. exclude the $2,000 on his income taxes.
c. deduct the entire $2,000 from his income taxes.
d. add a proportionate amount of the $2,000 to his basis.
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