Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2016,
Question:
Real estate agent's commission .............................$ 21,780
Appraisal fee........................................................ 600
Exterminator's certificate......................................... 300
Recording fees ......................................................800
Mortgage to First Bank .......................................305,000
Cash to seller ....................................................34,520
Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2016, Wesley purchases another residence for $325,000.
a. Calculate Wesley's recognized gain on the sale.
b. What is Wesley's adjusted basis for the new residence?
c. Assume instead that the selling price is $800,000. What is Wesley's recognized gain? His adjusted basis for the new residence?
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Related Book For
South Western Federal Taxation 2017 Comprehensive
ISBN: 9781305874169
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young
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