You purchased an apartment building for $700,000 and sold it 5 years later for $820,000. You paid 6% to the real estate agent who listed the property. How much is your realized gain?

Question

Quizplus · Accepted Answer

The realized gain is calculated by subtracting the purchase price and the cost of selling from the selling price. The cost of selling is 6% of $820,000, which is $49,200. Therefore, the realized gain is $820,000 - $700,000 - $49,200 = $70,800.

You Purchased an Apartment Building for $700,000 and Sold It