Taylor has owned and occupied her personal residence (adjusted basis of$190,000) for four years. In April 2019, she sells the residence for $300,000(selling expenses are $20,000). On the same day as the sale, Taylor purchasesanother house for $350,000. Because of noisy neighbors, she sells the new houseafter just 10 months. The selling price is $483,000 (selling expenses are $18,000).a. What is Taylor’s recognized gain on the sale of the first residence?b. What is Taylor’s basis for her second residence?c. What is Taylor’s recognized gain on the sale of the second residence?d. Assume instead that the sale of the second residence was due to Taylor’s jobtransfer to another state. What is her recognized gain on the sale of the secondresidence?
Taylor has owned and occupied her personal residence (adjusted basis of$190,000) for four years. In April 2019, she sells the residence for $300,000(selling expenses are $20,000). On the same day as the sale, Taylor purchasesanother house for $350,000. Because of noisy neighbors, she sells the new houseafter just 10 months. The selling price is $483,000 (selling expenses are $18,000).a. What is Taylor’s recognized gain on the sale of the first residence?b. What is Taylor’s basis for her second residence?c. What is Taylor’s recognized gain on the sale of the second residence?d. Assume instead that the sale of the second residence was due to Taylor’s jobtransfer to another state. What is her recognized gain on the sale of the secondresidence?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Taylor has owned and occupied her personal residence (adjusted basis of $190,000) for four years. In April 2019, she sells the residence for $300,000 (selling expenses are $20,000). On the same day as the sale, Taylor purchases another house for $350,000. Because of noisy neighbors, she sells the new house after just 10 months. The selling price is $483,000 (selling expenses are $18,000). a. What is Taylor’s recognized gain on the sale of the first residence? b. What is Taylor’s basis for her second residence? c. What is Taylor’s recognized gain on the sale of the second residence? d. Assume instead that the sale of the second residence was due to Taylor’s job transfer to another state. What is her recognized gain on the sale of the second residence? |
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