Anne sold her home for $290,000 in 2017. Selling expenses were $17,400. She purc

Question

Anne sold her home for $290,000 in 2017. Selling expenses were $17,400. She purchased it in 2011 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 2013 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 gain on the sale is _________

Explanation / Answer

Amount realized on sale:- $290000 --$17400 = $272600

Calculation of adjusted basis:- $ ( 200000--4500--13500-5500+7000+8000+7000). = $198500

Calculation of gain:- $ 272600--$198500=$74100

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