To calculate a gain or loss on the sale of an asset, the proceeds from the sale are reduced by which of the following?

Question

Quizplus · Accepted Answer

Selling expenses should be subtracted from the proceeds of the sale to arrive at the amount realized. Then, the tax basis of the property should be subtracted from the amount realized to arrive at the gain or loss on the sale. Therefore, both selling expenses and tax basis of the property should be reduced from the proceeds of the sale.

To Calculate a Gain or Loss on the Sale of an Asset