Samantha inherits a home on July 1, 2015, that had a basis in the hands of the decedent at death of $180,000 and a fair market value of $345,000 at the date of the decedent's death. She decides to sell her old principal residence, which she has owned and occupied for 9 years, with an adjusted basis of $95,000 and move into the inherited home. On September 16, 2015, she sells the old residence for $490,000. Samantha incurs selling expenses and legal fees of $34,000. She decides to add a pool, deck, pool house, and recreation room to the inherited home at a cost of $85,000. These additions are completed and paid for on November 1, 2015. What is her recognized gain on the sale of her old principal residence and her basis in the inherited home?
a. $361,000; $265,000
b. $0; $180,000
c. $111,000; $265,000
d. $361,000; $430,000
e. None of these choices are correct.

Answer rating: 100% (QA)

ANSWER e None of these choices are correct The adjusted basis of the inherited residence is the fair ... View the full answer