Question

Anne sold her home for $290,000 in 2019. Selling expenses were $17,400. She purchased it in 2013 for $200,000. During the period of ownership, Anne had done the following: Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation. (Refer to text Section 9-6a.) Deducted a casualty loss in 2015 for residential trees destroyed by a hurricane (her county was declared a Federal disaster area). 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. (Refer to text Section 7-3.) Paid street paving assessm

Answer 1

Consider the following calculations of the exercise

Step-by-step explanation:

• 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

Answer 2

Answer: $17,200

Step-by-step explanation:

Sales: 290,000

Less selling expenses (17,400)

________

A) 255,200

Purchase 200,000

Depreciation (4,500)

Casualty loss (19,000)

Reimbursement 13,500

street paving assessment 7,000

Side walk 8,000

Elevator 20,000

Medical expenses 13,000

_________

B) 238,000

Profit realized a-b

= 255,200 - 238,000

= $17,200