Dominic and Lois sell their home for $775,000, incurring selling expenses of $40,000. They had purchased the residence in 1990 for $185,000 and made capital improvements totaling $45,000. They buy a new residence for $310,000. What is their realized gain and recognized gain on the sale? What is their basis in the new house?

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The Answer of Dominic and Lois sell their home for $775,000, incurring selling expenses of $40,000. They had purchased the residence in 1990 for $185,000 and made capital improvements totaling $45,000. They buy a new residence for $310,000. What is their realized gain and recognized gain on the sale? What is their basis in the new house?

Dominic and Lois Sell Their Home for $775,000, Incurring Selling