Liz sold her principal residence for PHP 5,000,000 when its fair market value was PHP 6,000,000. The house was purchase 5 years ago for PHP 3,000,000. Out of the proceeds of PHP 5,000,000, Liz utilized the PHP 4,000,000 for the purchase of new residential house. What is the cost basis of the new residence PHP 2,000,000 PHP 5,000,000 PHP 2,400,000 PHP 4,000,000

Liz sold her principal residence for PHP 5,000,000 when its fair market value was PHP 6,000,000. The house was purchase 5 years ago for PHP 3,000,000. Out of the proceeds of PHP 5,000,000, Liz utilized the PHP 4,000,000 for the purchase of new residential house. What is the cost basis of the new residence PHP 2,000,000 PHP 5,000,000 PHP 2,400,000 PHP 4,000,000

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter15: Property Transactions: Nontaxable Exchanges

Section: Chapter Questions

Problem 32P

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