Anne sold her home for $290,000 in 2015. Selling expenses were $17,400. She purc

Question

Anne sold her home for $290,000 in 2015. Selling expenses were $17,400. She purchased it in 2009 for $200,000. During the period of ownership, Anne did the following:

Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation.

Deducted a casualty loss in 2011 for residential trees destroyed by a hurricane. 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.

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.

What is the amount that Anne realized on the sale?
$

What is the adjusted basis of Anne's home?
$

Anne's realized SelectgainlossCorrect 3 of Item 1  on the sale is $ .

Explanation / Answer

Actual cost = $200,000

Less: Depreciation = $4500

Less: casualty loss = $5500

Add : sidewalks = $8000

Add : Paving

Assesment = $7000

Add:Total cost = $7000
(20000-13000)
Add selling expenses = $17400

Less Selling price =$ 290000

__________________
Gain/Profit =$ 60600 answer

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