Generally, the recomputed adjusted basis of a repossessed residence is determined by the adjusted basis at the time of the 1) Original sale plus or minus any adjustments made prior to the repossession. 2) Original sale plus or minus any adjustments made after the repossession. 3) Resale plus or minus any adjustments made prior to the repossession. 4)Resale plus or minus any adjustments made after the repossession.

If a taxpayer's pension or annuity includes contributions that were previously included in gross income, the taxpayer may generally do all of the following except:

1) Exclude the distributions from income, but only up to the amount of cost. 2)Use the simplified method to compute the tax-free part of the payments if they began receiving payments after November 18, 1997. 3) Assume that the tax-free part of the payment will remain the same each year, even if the amount of the payment changes. 4) use the general rule to compute the tax-free part of their payments if they began receiving payment after November 18, 1997.

Explain Please!