LO.3 In 2005, Angela purchased a personal residence from Victor. She paid $300,000 for the residence. Victor paid real estate taxes of $9,125 for the real estate property tax year, of which $5,500 was allocable to the portion of the year that Angela owned the residence.

Angela sold the residence to Earl for $350,000 on December 7, 2012. Earl paid real estate taxes of $10,220 for the real estate property tax year, of which $9,576 was allocable to the portion of the year that Angela owned the residence. Angela provided you with the above information and asked that you determine her basis in the residence at the date of sale, the amount realized for the residence, her realized gain on the sale, and her property tax deduction for 2012. Write a letter to Angela Henson, who lives at 17250 Calistoga Drive, El Dorado, KS 67042, to communicate your answers.