Identified Recognized gain, Realized gain and Exclusio sale of personal residence. Tom and Debbie Dixon, a married couple, sell their pers to Susan Wallace. Susan Wallace pays $225,000 and assumes their $70,0 To make the sale, the Dixons pay $4,000 in commission legal costs. The couple has owned and lived in the house for seven tax basis is $125,000. Recognized gain $165,000 Exclusion Allowed $0 Realized gain $165,000