Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2016, for $148,000.
Question:
Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2016, for $148,000. He lived in the house for 7 years. The expenses of the sale are $9,000, and he has made capital improvements of $7,000. Larry's cost basis in his residence is $85,000. On November 30, 2016, 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
$________________
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Related Book For
Income Tax Fundamentals 2017
ISBN: 9781305872738
35th Edition
Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller
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