Problem 4-8 Sale of a Personal Residence (LO 4.6) On July 1, 2021, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted's basis in his residence is $50,000. The expenses associated with the sale of his home total $21,000. On December 15, 2021, Ted purchases and occupies a new residence at a cost of $225,000. Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence. Realized gain Recognized gain Adjusted basis of the new residence

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Problem 4-8
Sale of a Personal Residence (LO 4.6)
On July 1, 2021, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted's basis in his residence is $50,000. The
expenses associated with the sale of his home total $21,000. On December 15, 2021, Ted purchases and occupies a new residence at a cost of
$225,000.
Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence.
Realized gain
Recognized gain
Adjusted basis of the new residence
%24
%24
Transcribed Image Text:Problem 4-8 Sale of a Personal Residence (LO 4.6) On July 1, 2021, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted's basis in his residence is $50,000. The expenses associated with the sale of his home total $21,000. On December 15, 2021, Ted purchases and occupies a new residence at a cost of $225,000. Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence. Realized gain Recognized gain Adjusted basis of the new residence %24 %24
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