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

Ingrid's realized gain is calculated as the difference between the sale price and her basis in the home, minus any selling expenses. The sale price is $250,000, her basis is $180,000, and her selling expenses are $20,000. Therefore, her realized gain is $250,000 - $180,000 - $20,000 = $50,000.

On May 1 of This Year, Ingrid Sold Her Personal