Paden, who is single and has been employed as an accountant for $27$ years with Harper, Inc., lost his job due to company downsizing. His last day of employment is July $31,2022,$ and Harper provides a $$9,000$ severance payment. The severance payments are based on an employee$$s time of employment. During the year, Paden received a salary from Harper of $$56,000.$ Harper also paid $$8,500$ of Paden$$s medical insurance premiums. In May $2022,$ Paden, who had always wanted to be associated with a football team, applied for the head coaching job at Hawk University in Iowa and, much to his surprise received the job beginning on August $1.$ In June and July, Paden paid $$4,500$ to take courses in sports management at the local university. Hawk University is substantially short of funding, and Paden paid $$2,000$ for entertainment expenses related to his job and $$500$ for supplies. No reimbursement was received. His salary from Hawk is $$5,000$ per month, payable at the end of each month. His salary for December was not received until January $6,2023.$ On August $1,$ he sold his house for $$329,000$ in Texas and paid a sales commission of $$14,000.$ He inherited the house $20$ years ago when his mother died. Her basis for the house was $$37,000$ and the FMV when she died was $$50,000.$ Property taxes for the $2022$ calendar year amount to $$3,600,$ and property taxes were apportioned at the closing. Property taxes are payable on October $1.$ He paid $$2,100$ of interest on home equity debt of $$30,000,$ incurred to purchase a new car. To move to Iowa, he drove $700$ miles and spent $$62$ for meals during the trip in July. Movers charged $$4,150$ to move his household items. He purchased a new house in Iowa for $$150,000$ on August $15$ and borrowed $$110,000.$ He also agreed to pay all property taxes for $2022.$ Real property taxes for the home in Iowa will be paid on January $30,2023,$ and amount to $$1,500.$ Interest on the $$110,000$ debt during the current year is $$1,930.$ To obtain the loan, Paden paid points of $$1,000.$ He contributed common stock $($basis of $$1,000$ and FMV of $$8,000)$ held as an investment for three years to Hawk University. He also paid state income taxes of $$1,765($which was greater than state sales taxes for the year$)$ as well as personal property taxes of $$435$ for his car.

Paden sold $200$ shares of Dell Corporation stock on April $10$ for $$100$ per share. His

basis was $$145$ per share. On May $1,$ he purchased $300$ shares of Dell at $$89$ per share.

Determine:

$1.$ gross income without considering the sale of his house or the Dell Corporation stock.

$2.$ recognized gain due to the sale of his house.

$3.$ net capital gain.

$4.$ adjusted gross income.

$5.$ total amount of itemized deductions.

$6.$ taxable income.

$7.$ basis of his house in Iowa.

$8.$ if the sales price for his home was $$470,000$ instead of $$370,000,$ would his taxable

income increase by more than $$100,000.$ If yes, explain