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    How do you calculate the realized gain on the sale of Anne's home?

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    Anne sold her home for $260,000 in 2008. Selling expenses were $15K. She had purchased it in 2001 for $190K. During the period of ownership, Anne had done the following:

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

    Deducted a casualty loss for residential trees destroyed by a hurricane. The total loss was $19K (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 $7K and added sidewalks for $11k.

    Installed an elevator for medial reasons. The total cost was $20K, and Anne deducted $12K as medical expenses.

    What is Ann'e realized gain?

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    Solution Preview

    In order to determine the realized gain we first have to determine the adjusted basis for the home. We will need to ...

    Solution Summary

    This solution shows the step by step calculations for determining the realized gain on the sale.