Carlos, who is single, sells his personal residence on July 10, 2022, for $505,000 (the buyer paid $200,000 in cash at closing and signed a note for the balance). In addition, the buyer assumed a mortgage of $160,000 on the house.

His adjusted basis in the house he sold was $325,000 and had owned and lived in the home for 6 years. Carlos pays realtor's commissions of $20,000.

(a) Calculate Carlos's amount realized and realized gain from the sale of the residence.

(b) Calculate Carlos's recognized gain. Be sure to show the amount of gain, if any, that Carlos may exclude under Section 121.

(c) How much gain would Carlos recognize if he were married filing a joint tax return?

(d) Carlos purchases another residence on July 31, 2022, for $425,000. What is Carlos's basis in his new residence?