Sale of a Personal Residence ( L0 4.6) Larry Gaines, a single taxpayer, age 42 , selis his personal residence on November 12,2022 , for $151;600. He lived in the house for 7 years, The expenses of the sale are $10,612, and he has made capital improvements of $4,548, Larry's cost basis in his residence is $87,928, On November 30, 2022, Larry purchases and occupies a new residence at a cost of $189,500. Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence. If an amount is zero, enter " 0 ". Fetchack * Check My Work For gains on the sale of a personal residence after May 6, 1997, a seller of any age who has owned and used a home as a principal residence for at least 2 of the iast 5 years before the sale can exclude from income up to a statutory amount of gain (depending on filing status). In general, this personal residence exclusion can be used only once every 2 years. As under prior law, a personal residence includes single-family homes, mobile homes, houseboats, condominlums, cooperative apartments, duplexes, or row houses. The taxpayer's overall gain or loss is calculated using the following formula: Amount realized - Adjusted basis = Gain or loss realized. The adjusted basis of property is equal to the original basis plus and minus certain adjustments