the icon to view additional information Read the requirements Enter all currency amounts in dollars not millions Requirement a What is the current adjusted basis of the house Enter the amount in dollars not millions The current adjusted basis of the house is Requirement b Mrs Dale is an employee of Scottie Consulting and has a nice office on the business premises however she finds it helpful to use one of the bedrooms as an office to do work in the evenings and on weekends May the Dales claim a deduction for depreciation The Dales claim a deduction for depreciation because Requirement c Determine their recognized gain and character if they sell the house today for 29 million Enter the amount in dollars not millions as stated in the requirement The Dales will recognize gain of if they sell the house today for 2900000 Requirement d If the property is owned by Mrs Dale instead of owned jointly determine their recognized gain and character if they sell the house today for 29 million Enter the amount in dollars not millions as stated in the requirement If the property is owned by Mrs Dale instead of owned jointly the Dales will recognize gain of if they sell the house today for 2900000 Requirement e If the property is owned by Mrs Dale instead of owned jointly and Mr Dale dies will the basis of the house be increased increase if Mr Dale dies because the house included in his gross estate Requirement f Determine their recognized gain if they exchange the house today for an apartment complex valued at 29 million The Dales will purchase another house and hire someone to manage the apartment complex Enter the amount in dollars not millions as stated in the requirement This transaction as a likekind exchange As such the Dales will recognize a gain of if they sell the house today for 2900000 Requirement g If the house is destroyed by a fire when its FMV is 29 million and the Dales receive 27 million determine their casualty loss deduction and gain recognized if any The Dales do not plan to purchase another residence Enter a zero for any zero balances Enter all amounts in dollars not millions as stated in the requirement If the house is destroyed by a fire when its FMV is 2900000 and the Dales receive 2700000 they do not plan to purchase another residence their casualty loss deduction will be and their recognized gain will amount to Requirement h If the Dales want to purchase another principal residence after collecting the insurance in part gabove what is the minimum amount they would have to pay for the new residence to avoid recognizing any gain Enter all amounts in dollars not millions They will have to pay at least for a new residence to avoid recognizing any gain In 1996 they sold the house for 185000 and purchased a new residence for 12 million At that time the Dales were allowed to defer the 140000 gain because they purchased a more expensive residence but the basis of the residence was reduced by the gain deferred The Taxpayer Relief Act of 1997 eliminated this deferral provision and made it easier for taxpayers who sell a principal residence to exclude the gain resulting from the sale even if they do not purchase a replacement residence In 2002 the Dales spent 120000 to add a porch to their house that overlooks the small pond behind their house In 2005 they hired painters to paint the entire house at a cost of 15000 They estimate that 34000 has been spent on routine repairs since 1996 but insurance of 10000 was collected for the repairs resulting from a small tornado in 2009 No casualty loss deduction was allowed They hold the residence as joint tenants Print Done a What is the current adjusted basis of the house b Mrs Dale is an employee of Scottie Consulting and has a nice office on the business premises however she finds it helpful to use one of the bedrooms as an office to do work in the evenings and on weekends May the Dales claim a deduction for depreciation c Determine their recognized gain and character if they sell the house today for 29 million d If the property is owned by Mrs Dale instead of owned jointly determine their recognized gain and character if they sell the house today for 29 million e If the property is owned by Mrs Dale instead of owned jointly and Mr Dale dies will the basis of the house be increased f Determine their recognized gain if they exchange the house today for an apartment complex valued at 29 million The Dales will purchase another house and hire someone to manage the apartment complex g If the house is destroyed by a fire when its FMV is 29 million and the Dales receive 27 million determine their casualty loss deduction and gain recognized if any The Dales do not plan to purchase another residence h If the Dales want to purchase another principal residence after collecting the insurance in part g above what is the minimum amount they would have to pay for the new residence to avoid recogniz