Problem Algorithmic
Sale of a Personal Residence LO
Larry Gaines, a single taxpayer, age sells his personal residence on November for $ He lived in the
house for years. The expenses of the sale are $ and he has made capital improvements of $ Larry's cost basis
in his residence is $ On November Larry purchases and occupies a new residence at a cost of $
Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence.
If an amount is zero, enter O
a Realized gain
b Recognized gain
c Adjusted basis of new residence
