On May 1 of this year,Ingrid sold her personal residence for $250,000.Commissions on the sale were $20,000.Ingrid also incurred $10,000 of costs for painting and repairs,which were all completed and paid for two weeks prior to the sale of her home.Ingrid's basis in her old home was $180,000.Ingrid's realized gain upon the sale of her first home is

Question

Quizplus · Accepted Answer

To calculate Ingrid's realized gain on the sale of her personal residence, we need to start with the selling price ($250,000) and subtract the following: 
- Selling expenses (commissions): $20,000 
- Cost of improvements: $10,000 
- Basis in the old home: $180,000

$250,000 - $20,000 - $10,000 - $180,000 = $40,000

Therefore, Ingrid's realized gain on the sale of her personal residence is $40,000. The correct answer choice is C.

On May 1 of This Year,Ingrid Sold Her Personal Residence