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Federal Income Tax Chapter 4 Homework Problem 4-7 (Algorithmic) Sale of a Personal Residence (LO 4.6) Larry Gaines, a single taxpayer, age 42, sells his

Federal Income Tax Chapter 4 Homework

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Problem 4-7 (Algorithmic) Sale of a Personal Residence (LO 4.6) Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for $162,800. He lived in the house for 7 years. The expenses of the sale are $11,396, and he has made capital improvements of $4,884. Larry's cost basis in his residence is $94,424. On November 30, 2019, Larry purchases and occupies a new residence at a cost of $203,500. Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence. If an amount is zero, enter "0". a. Realized gain $ b. Recognized gain c. Adjusted basis of new residence $

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