Carolyn, a single taxpayer, sold her primary residence for $450,000 in 2016. Costs of sale were $25,000. Her original cost for residence at acquisition in 2011 was $145,000. She added a swimming pool for $20,000 in 2013. She purchased a new principal residence in 2016 for $325,000. What are Carolyn's tax consequences on the sale of her principal residence and what is the adjusted basis of her new principal residence? Ken owns a condo in the Great Smokies. His rental income was $18,000. Ken's use days were 40, and rented days totaled 160. Total expenses related to this property are as insurance $1,000; Repairs - $1,400; mortgage interest - $6,000; property taxes - $2,000; Utilities $1,600; cost recovery - $16,000. Calculate the amount of each expense that is deductible and where it is deductible on the return (Use the IRS approach). Explain