Question
George and Hillary are a married couple and during 2019 they decided to sell their residence which had a basis of $300,000. They were married
George and Hillary are a married couple and during 2019 they decided to sell their residence which had a basis of $300,000. They were married in 2019. George had owned the residence and lived in it for 20 years but Hillary had lived in another city prior to being married to George. The outside of the residence was painted and it cost $6,000. They did this to make the house more marketable before they sold it. The residence sold for $880,000. Broker's commsions plus other selling expenses were $53,000. Since they both are age 68 they decided to rent an apartment and used the sale proceed to purchase an annuity. What is their realized and recognized gain?
*Please show your work and clearly explain each step so that it is not confusing to understand.
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