A married couple who are both self-employed and work out of their home purchased a new home in July 2017 for $420,000

Accounting Nov 12, 2020

A married couple who are both self-employed and work out of their home purchased a new home in July 2017 for $420,000. In September 2017, they converted two bedrooms into office space where they meet clients in their home. In April 2019, they sold their home on which they had taken $40,000 depreciation. Their home sold for $600,000. What amount of the gain is includible in their income on their joint return? A. $40,000 B. $220,000 C. $180,000 D. $0

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