Let me know if you can help me with this problem Piglet, who is single, listed h

Question

Let me know if you can help me with this problem

Piglet, who is single, listed his personal residence with a realtor on March 3, 2015, at a price of dollar280,000. He rejected several offers in the dollar200,000 range during the summer. Finally, on August 16, 2015, he and the purchaser signed a contract to sell for dollar245,000. The closing (i.e. sale) took place on September 7, 2015. The closing statement showed the following disbursements: Piglet's adjusted basis for the house is dollar150,000. He owned and occupied the house for eight years. On October 1, 2015, Piglet purchases another residence for dollar220,000. Calculate Piglet's recognized gain on sale. What is Piglet's adjusted basis for the new residence? Assume instead that the selling price is dollar735,000. What is Piglet's recognized gain?

Explanation / Answer

answer:

a. Sale consideration 245000

Cost of aquisition (150000)

sales expenses (15200)

gain on sale $79800

b. adjusted basis for new house:

cost of purchase 220000

gain on sale (79800)

Adjusted cost $140200

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.