On January 5,2011,Bill sells his principal residence with an adjusted basis of $212,000 for $550,000.He has owned and occupied the residence for 18 years.He pays $30,000 in commissions and $2,000 in legal fees in connection with the sale.One month before the sale,Bill painted the exterior of the house at a cost of $5,000 and repaired various items at a cost of $3,000.On October 15,2011,Bill purchases a new home for $525,000.On November 15,2012,he pays $25,000 for completion of a new room on the house,and on January 14,2013,he pays $15,000 for the construction of a pool.What is the Bill's recognized gain on the sale of his old principal residence and what is the basis for the new residence?

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The Answer of On January 5,2011,Bill sells his principal residence with an adjusted basis of $212,000 for $550,000.He has owned and occupied the residence for 18 years.He pays $30,000 in commissions and $2,000 in legal fees in connection with the sale.One month before the sale,Bill painted the exterior of the house at a cost of $5,000 and repaired various items at a cost of $3,000.On October 15,2011,Bill purchases a new home for $525,000.On November 15,2012,he pays $25,000 for completion of a new room on the house,and on January 14,2013,he pays $15,000 for the construction of a pool.What is the Bill's recognized gain on the sale of his old principal residence and what is the basis for the new residence?

On January 5,2011,Bill Sells His Principal Residence with an Adjusted