Sale of a Personal Residence (LO 4.6) 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 $fill in the blank 1 b. Recognized gain $fill in the blank 2 c. Adjusted basis of new residence $fill in the blank 3
Sale of a Personal Residence (LO 4.6) 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 $fill in the blank 1 b. Recognized gain $fill in the blank 2 c. Adjusted basis of new residence $fill in the blank 3
Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges
Section: Chapter Questions
Problem 88P
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Sale of a Personal Residence (LO 4.6)
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".
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