Bill and Pam decided to "call it quits" and retire. They sold their home in New Jersey and moved to a condominium in Florida. They are ready to collect social security and to withdraw from their retirement plans. However, they are shocked to learn that they must pay to obtain certain parts of Medicare, even though they paid into the Medicare system via payroll deductions throughout their working lives.

PART B: Income issues: 1. Bill and Pam have been in their NJ home for quite a number of years. Assume they purchased it on 1/01/90 for $150,000, sold it on 1/01/18 for $360,000, incurred closing costs of $10,000 upon sale, and purchased the condo in Florida for $300,000. a. Obtain the "For Transferor" copy of Form 1099-S (Proceeds from Real Estate Transactions) from the IRS website. Using the above information, prepare the form in handwriting. Note the "Filer" is usually the attorney who handles the closing. The "Transferor" is Bill and Pam.

b. how much is the gain on sale of the residence and how is it treated for tax purposes? c. what is the basis of the new Florida condo?