Sale of a Principal Residence. Marc, age 45, sells his personal residence on May 15, 2015, for $180,000. He pays $8,000 in selling expenses and $900 in repair expenses to help sell the residence. He has lived in the residence since 1980, when he purchased it for $55,000. In 1996, he paid $6,000 to install central air conditioning. If Marc purchases a new prin- cipal residence in December of the current year for $162,000, what is the realized gain, recognized gain, and the basis for the new residence?