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. If an amount is zero, enter "0". a.  Realized gain $ b.  Recognized gain $ c.  Adjusted basis of new residence $

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 55P
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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.

If an amount is zero, enter "0".

a.  Realized gain $
b.  Recognized gain $
c.  Adjusted basis of new residence $
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