Anne sold her home for $290,000 in 2021. Selling expenses were $17,400. She purchased it in 2015 for $200,000. During the period of ownership, Anne had done the following: • Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation. (Refer to text Section 9-6a.) • Deducted a casualty loss in 2017 for residential trees destroyed by a hurricane (her county was declared a Federal disaster area). The total loss was $19,000 (after the $100 floor and the 10%-of-AGI floor), and Anne's insurance company reimbursed her for $13,500. (Refer to text Section 7-3.) • Paid street paving assessment of $7,000 and added sidewalks for $8,000. • Installed an elevator for medical reasons. The total cost was $20,000, and Anne deducted $13,000 as medical expenses. (Refer to text Section 10-1b.) What is the amount that Anne realized on the sale? What is the adjusted basis of Anne's home? Anne's realized gain on the sale is $?

Anne sold her home for $290,000 in 2021. Selling expenses were $17,400. She purchased it in 2015 for $200,000. During the period of ownership, Anne had done the following: • Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation. (Refer to text Section 9-6a.) • Deducted a casualty loss in 2017 for residential trees destroyed by a hurricane (her county was declared a Federal disaster area). The total loss was $19,000 (after the $100 floor and the 10%-of-AGI floor), and Anne's insurance company reimbursed her for $13,500. (Refer to text Section 7-3.) • Paid street paving assessment of $7,000 and added sidewalks for $8,000. • Installed an elevator for medical reasons. The total cost was $20,000, and Anne deducted $13,000 as medical expenses. (Refer to text Section 10-1b.) What is the amount that Anne realized on the sale? What is the adjusted basis of Anne's home? Anne's realized gain on the sale is $?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 44P

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