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On January 12, 2018, Albert and Allison sold their personal residence for $715,150 and purchased a new house for $725,000. Th

What is their cost basis and what is their expense of sale?

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Answer #1

Cost Basis = Old house cost + New bedroom and bathroom cost + pool cost

= $120,000 + $ 20,000 + $60,000

= $200,000

Expense of Sale = Nothing given

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