In 1996, Mr and Mrs Sellers purchased their first principal residence for $100,000 In 2000, they spent $50,000 to add a room to the house In 2010, the entire residence was painted at a cost of $8,000 They have spent about $25,000 in routine maintenance and repairs since acquiring the home Determine the following Calculate the basis of the property Calculate the amount of recognized gain or loss if the home was sold today for $900,000 Calculate the amount of recognized gain or loss if the home was sold today for $500,000 Calculate the amount of recognized gain or loss if the home was sold today for $100,000 ExplainthetaxconsiderationsthatMr andMrs Sellersmustconsideriftheydecidedtoconverttheresidenceintoarentalproperty Requirements Clearly identify the requirements being addressed Show all calculations within the cells of an Excel spreadsheet This means that you must use formulas and links so that the thought process can be examined Make good use of comments to convey your thought process as well No hard coding of solutions Submit a single MS Excel file for grading Review the grading rubric to understand how you will be graded on this assignment Reach out to your instructor if you have questions about the assignment Note Please review the Sale of a Personal Residence page in Module 7

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In 1996, Mr. and Mrs. Sellers purchased their first principal residence for $100,000. In 2000, they spent $50,000 to add a room to the house.

In 1996, Mr. and Mrs. Sellers purchased their first principal residence for $100,000. In 2000, they spent $50,000 to add a room to the house. In 2010, the entire residence was painted at a cost of $8,000. They have spent about $25,000 in routine maintenance and repairs since acquiring the home. Determine the following:

Calculate the basis of the property
Calculate the amount of recognized gain or loss if the home was sold today for $900,000
Calculate the amount of recognized gain or loss if the home was sold today for $500,000.
Calculate the amount of recognized gain or loss if the home was sold today for $100,000.
ExplainthetaxconsiderationsthatMr.andMrs.Sellersmustconsideriftheydecidedtoconverttheresidenceintoarentalproperty.

Requirements: Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions. Submit a single MS Excel file for grading.

Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment. Note: Please review the Sale of a Personal Residence page in Module 7.