Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for $196,400. He lived in the house for 7 years. The expenses of the sale are $13,748, and he has made capital improvements of $5,892. Larry's cost basis in his residence is $113,912. On November 30, 2019, Larry purchases and occupies a new residence at a cost of $245,500. 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 $
Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for $196,400. He lived in the house for 7 years. The expenses of the sale are $13,748, and he has made capital improvements of $5,892. Larry's cost basis in his residence is $113,912. On November 30, 2019, Larry purchases and occupies a new residence at a cost of $245,500. 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 $
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 $196,400. He lived in the house for 7 years. The expenses of the sale are $13,748, and he has made capital improvements of $5,892. Larry's cost basis in his residence is $113,912. On November 30, 2019, Larry purchases and occupies a new residence at a cost of $245,500.
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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