Question

Problem 13-44 (LO. 1) Anne sold her home for $290,000 in 2019. Selling expenses were $17,400. She purchased it in 2013 for $200,000. During the period of ownership, Anne had done the following: • Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation. (Refer to text Section 9-6a.) • Deducted a casualty loss in 2015 for residential trees destroyed by a hurricane (her county was declared a Federal disaster area). The total loss was $19,000 (after the $100 floor and the 10%-of-AGI floor), and Anne's insurance company reimbursed her for $13,500. (Refer to text Section 7-3.) • Paid street paving assessment of $7,000 and added sidewalks for $8,000. • Installed an elevator for medical reasons. The total cost was $20,000, and Anne deducted $13,000 as medical expenses. (Refer to text Section 10-16) What is the amount that Anne realized on the sale? What is the adjusted basis of Anne's home? Anne's realized on the sale is $

Answer 1

Answej page=0 Based on the given problem. a) Amount realized on sale - fone Sold her home selling expenses = 290000 - &17400 =142726001 b) adjusted basis of Anne's home. El purchased in 2013 - deprecation, company reimbwysed -( total loss - company reimbursed) + paving assessment + added sidewalks te total cost- deducted) (200000 - 4500-13500.-( 19000 - 13500)+ 70004 8000 +(20000 - 13000)] (189000 - (5500) +15000+7000) 176500 +15000+ 7000 - 4 198500 c) calculation of gain amount realized on sale - calculation d adjust 272600. 198500 red basis. - $ 74100 gain |