Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for $151,200.
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Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for $151,200. He lived in the house for 7 years. The expenses of the sale are $9,072, and he has made capital improvements of $10,150. Larry’s cost basis in his residence is $86,750. On November 30, 2019, Larry purchases and occupies a new residence at a cost of $150,000. 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 2020
ISBN: 9780357108239
38th Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
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