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Daniel, who is single, purchased a house on May 15, 1993, for $115,000. During the years he owned the house, he installed a swimming pool
Daniel, who is single, purchased a house on May 15, 1993, for $115,000. During the years he owned the house, he installed a swimming pool at a cost of $24,000 and replaced the driveway at a cost of $12,000. On April 28, 2016, Daniel sold the house for $470,000. He paid a realtor commission of $28,000 and legal fees of $1,000 connected with the sale of the house. What is Daniels recognized gain on the sale of the house?
a. $40,000.
b. $290,000.
c. $0.
d. $319,000.
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