On July 1, 2020. Ted, age 73 and single, sells his personal residence of the last 30 years for $368,000. Ted's basis in his residence is $49,000. The expenses accociated with the sale of his home totaled $22,000. On December 15, 2020, Ted purchases and occupies a new residence at a cost of $ 175,000. Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence. I am having trouble figuring out the Recognized gain. Realized is $297,000 Adjusted basis of the new residence is $175,000
On July 1, 2020. Ted, age 73 and single, sells his personal residence of the last 30 years for $368,000. Ted's basis in his residence is $49,000. The expenses accociated with the sale of his home totaled $22,000. On December 15, 2020, Ted purchases and occupies a new residence at a cost of $ 175,000. Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence. I am having trouble figuring out the Recognized gain. Realized is $297,000 Adjusted basis of the new residence is $175,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2020. Ted, age 73 and single, sells his personal residence of the last 30 years for $368,000. Ted's basis in his residence is $49,000. The expenses accociated with the sale of his home totaled $22,000. On December 15, 2020, Ted purchases and occupies a new residence at a cost of $ 175,000.
Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence.
I am having trouble figuring out the Recognized gain.
Realized is $297,000
Adjusted basis of the new residence is $175,000
Thanks for any help.
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