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What is the formula for calculating capital gain when a principal residence is sold?

North Carolina Real Estate Commission NCREC-Broker-N Full Course Access
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What is the formula for calculating capital gain when a principal residence is sold?

A.

Amount Realized - Adjusted Basis

B.

Amount Realized + Adjusted Basis

C.

Adjusted Basis / Amount Realized

D.

Adjusted Basis - Amount Realized

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