Elvin 45 years of age sells his residence in 2014
Elvin, 45 years of age, sells his residence in 2014. He receives $30,000 in cash, and the buyer assumes his $105,000 mortgage. Elvin also pays $6,500 in commissions and transfer costs.
a. Calculate the amount realized on the sale.
$ _______________
b. If the residence was acquired in 1986, and its adjusted basis is $75,000, calculate the amount and nature of the taxable gain on the sale (assuming he does not purchase a new residence).
$ _______________
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