Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2021, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, 2021, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7, 2021. The closing statement showed the following disbursements: Real estate agent's commission $21,780 Appraisal fee 600 Exterminator's certificate 300 Recording fees 800 Mortgage to First Bank 305,000 Cash to seller 34,520 Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2021, Wesley purchases another residence for $325,000. If an amount is zero, enter "0". a. Calculate Wesley's recognized gain on the sale. $fill in the blank 8f7d83fcffe7f9b_1 b. What is Wesley's adjusted basis for the new residence? $fill in the blank 3c3f47fcd073021_1 c. Assume instead that the selling price is $800,000. What is Wesley's recognized gain? His adjusted basis for the new residence? Wesley's recognized gain is $fill in the blank 91448804a06ffd4_1, and his adjusted basis for the new residence is $fill in the blank 91448804a06ffd4_2.
Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2021, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, 2021, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7, 2021. The closing statement showed the following disbursements:
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Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2021, Wesley purchases another residence for $325,000.
If an amount is zero, enter "0".
a. Calculate Wesley's recognized gain on the sale.
$fill in the blank 8f7d83fcffe7f9b_1
b. What is Wesley's adjusted basis for the new residence?
$fill in the blank 3c3f47fcd073021_1
c. Assume instead that the selling price is $800,000. What is Wesley's recognized gain? His adjusted basis for the new residence?
Wesley's recognized gain is $fill in the blank 91448804a06ffd4_1, and his adjusted basis for the new residence is $fill in the blank 91448804a06ffd4_2.
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