Question

Larry Gaines, age 42, sells his personal residence on November 12, 2014, for $144,000. He lived in the house for 7 years. The expenses of the sale are $10,500, and he has made capital improvements of $5,500. Larry’s cost basis in his residence is $84,000. On November 30, 2014, Larry purchases and occupies a new residence at a cost of $148,000. Calculate Larry’s realized gain, recognized gain, and the adjusted basis of his new residence.
a. Realized gain $ _____________
b. Recognized gain $ _____________
c. Adjusted basis of new residence $ _____________


$1.99
Sales10
Views617
Comments0
  • CreatedJuly 16, 2015
  • Files Included
Post your question
5000