In 2019, the basis of a taxpayer's replacement residence is equal to the cost of the replacement residence less the gain which was deferred on the sale of the old residence.

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The basis of a taxpayer's replacement residence is generally the cost of the replacement residence, adjusted by the gain deferred from the sale of the old residence, not reduced by it. This adjustment typically involves increasing the basis by the amount of deferred gain, not decreasing it.

In 2019, the Basis of a Taxpayer's Replacement Residence Is