Larry Gaines, age 42, sells his personal residence on November 12, 2018, for $190,000. He lived in the house for 7 years. The expenses of the sale are $13,300, and he has made capital improvements of $5,700. Larry's cost basis in his residence is $110,200. On November 30, 2018, Larry purchases and occupies a new residence at a cost of $237,500. 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 $ 0

c. Adjusted basis of new residence $

2. Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1992. He also acquired a rental house in 2018, which he actively manages. During 2018, Walter's share of the partnership's losses was $25,000, and his rental house generated $41,000 in losses. Walter's modified adjusted gross income before passive losses is $117,000.

If an amount is zero, enter "0".

a. Calculate the amount of Walter's allowable deduction for rental house activities for 2018.