Exercise 13-43 (Algorithmic) (LO. 8)
On August 31, 2017, Harvey and Margaret, who file a joint return and live in Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized gain of $316,600 was excluded under § 121. They purchased another personal residence in Charleston for $506,560 on September 1, 2017. However, in 2018, Harvey's employer transfers him to Houston, Texas. They sell their Charleston home on February 28, 2018, and purchase a new home in Houston. The realized gain on the second sale is $284,940.
Harvey and Margaret's recognized gain on the second sale is $. _______________
Exercise 13-43 (Algorithmic) (LO. 8) On August 31, 2017, Harvey and Margaret, who file a joint...
Exercise 13-43 (Algorithmic) (LO. 8) On August 31, 2018, Harvey and Ling, who file a joint return and live in Charleston, South Carolina, sell their personal residence, which they have owned and lived in for 10 years. The realized gain of $367,000 was excluded under $ 121. They purchased another personal residence in Charleston for $587,200 on September 1, 2018. However, in 2019, Harvey's employer transfers him to Houston, Texas. The couple sells the Charleston home on February 28, 2019,...
Exercise 13-42 (Algorithmic) (LO. 8) Constanza, who is single, sells her current personal residence (adjusted basis of $271,500) for $760,200. She has owned and lived in the house for 30 years. Her selling expenses are $38,010. What is Constanza's realized and recognized gain? Constanza's realized gain is $ and her recognized gain would be $