Challenge #362: Capital Gains Tax when Selling a Home

[JBevan89]

Solution attached.  I'm not sure about the answer, because would you not pay the tax progressively, i.e. above the threshold you only pay the percentage

[lduong48]

Spoiler

[yiyu_aia]

Ｔｈｅ　ｍｅａｎｉｎｇ　ｏｆ　Ｏｖｅｒａｇｅ　ｉｓ　ａ　ｂｉｔ　ｃｏｎｆｕｓｉｎｇ

[3I_ATLAS]

Instructions are not clear.  You don't get 2 deductions.  If after applying deduction one (either 250Kor 500K) there's still a gain, the household doesn't get to keep this deduction and then apply the 2nd deduction (as per the challenge's instructions).  Instead, the household is forced to take the much smaller amount given by deduction2 (capital improvement).  I am not not a CPA, but usually in cases like these at a minimum the tax payer gets whichever deduction is higher when not both. 😒

[3I_ATLAS]

Very Frustrating!  The challenge in itself is easy, the impossible part is deciphering the cryptic instructions on how to apply the deductions.

Spoiler

[annbriceAB]

my solution

[JGonzalez1015]

Solution

[jfissel]

Spoiler

[JGonzalez1015]

Spoiler

[RebekaMazuchova]

:)