Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2017,
Question:
Real estate agent's commission ........... $ 21,780
Appraisal fee ....................................... 600
Exterminator's certificate ........................ 300
Recording fees .................................... 800
Mortgage to First Bank ..................... 305,000
Cash to seller .................................. 34,520
Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2017, Wesley purchases another residence for $325,000.
a. Calculate Wesley's recognized gain on the sale.
b. What is Wesley's adjusted basis for the new residence?
c. Assume instead that the selling price is $800,000. What is Wesley's recognized gain? His adjusted basis for the new residence?
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Related Book For
South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781337386173
21st Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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