Question
Problem 7-41 (a) (LO. 7) Norberto and Nita, who are married, listed their personal residence with a real estate agent on July 15, 2018, at
Problem 7-41 (a) (LO. 7)
Norberto and Nita, who are married, listed their personal residence with a real estate agent on July 15, 2018, at a price of $985,000. They rejected several offers in the $900,000 range during the fall. Finally, on November 3, 2018, they and the purchaser signed a contract to sell for $965,000. The sale (i.e., closing) took place on December 1, 2018. The closing statement showed the following disbursements:
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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, 2018, they purchased another residence for $320,000. Norberto and Nita file a joint tax return.
If an amount is zero, enter "0".
a. Norberto and Nita's recognized gain on the sale is $.
b. Norberto and Nita's adjusted basis for the new residence is $.
c. Assume instead that the selling price is $860,000.
Norberto and Nita's recognized gain is $, and their adjusted basis for the new residence is $
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