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Please help with part C. None of the past answers to this part have been correct. I just need part C. Norberto and Nita, who
Please help with part C. None of the past answers to this part have been correct. I just need part C.
Norberto and Nita, who are married, listed their personal residence with a real estate agent on July 15 of the current year at a price of $985,000. They rejected several offers in the $900,000 range during the fall. Finally, on November 3, 2020, they and the purchaser signed a contract to sell for $965,000. The sale (i.e., closing) took place on December 1. The closing statement showed the following disbursements: Real estate agent's commission $38,000 Appraisal fee 800 Advertising cost for sale 1,000 Recording fees 450 Mortgage to First Bank 480,000 Cash to seller 444,750 Norberto and Nita's adjusted basis for the house is $345,000. They owned and occupied the house for ten years and neither have sold any other residences in the past two years. On December 20, they purchased another residence for $320,000. Norberto and Nita file a joint tax return. If an amount is zero, enter "O". a. Calculate Norberto and Nita's recognized gain on the sale. $ 79,750 b. What is Norberto and Nita's adjusted basis for the new residence? $ 320,000 Feedback Check My Work Correct c. Assume instead that the selling price is $860,000. What is their recognized gain? Their adjusted basis for the new residence? Norberto and Nita's recognized gain is $| X, and their adjusted basis for the new residence is $ 320,000 VStep by Step Solution
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