Shirley sold her personal residence to Mike for $400,000.Before the sale,Shirley paid the real estate taxes of $7,030 for the calendar year.For income tax purposes,the deduction is apportioned as follows: $4,000 to Shirley and $3,030 to Mike.
a.What amount of real estate taxes can Mike deduct?
a.What is Mike's basis in the residence?
b.What amount of real estate taxes can Shirley deduct?
b.What is Shirley's amount realized from the sale of the residence?

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The Answer of Shirley sold her personal residence to Mike for $400,000.Before the sale,Shirley paid the real estate taxes of $7,030 for the calendar year.For income tax purposes,the deduction is apportioned as follows: $4,000 to Shirley and $3,030 to Mike.
a.What amount of real estate taxes can Mike deduct?
a.What is Mike's basis in the residence?
b.What amount of real estate taxes can Shirley deduct?
b.What is Shirley's amount realized from the sale of the residence?

Shirley Sold Her Personal Residence to Mike for $400,000