Question

LO.1LO.1State and explain the computation of realized gain or loss on property dispositions. Anne sold her home for $290,000 in 2019. Selling expenses were $17,400. She purchased it in 2013 for $200,000. During the period of ownership, Anne did the following. Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation. (Refer to text Section 9-6a). Deducted a casualty loss in 2015 for residential trees destroyed by a hurricane (her county was declared a Federal disaster area). The total loss was $19,000 (after the $100 floor and the 10%-of-AGI floor), and Anne’s insurance company reimbursed her for $13,500. (Refer to text Section 7-3.) Paid street paving assessment of $7,000 and added sidewalks for $8,000. Installed an elevator for medical reasons. The total cost was $20,000, and Anne deducted $13,000 as medical expenses. (Refer to text Section 10-1b.) What is Anne’s realized gain?

LO.1LO.1State and explain the computation of realized gain or loss on property dispositions. Anne sold her home for $290,000 in 2019. Selling expenses were $17,400. She purchased it in 2013 for $200,000. During the
period of ownership, Anne did the following.

Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation. (Refer to text Section 9-6a).

Deducted a casualty loss in 2015 for residential trees destroyed by a hurricane (her county was declared a Federal disaster
area). The total loss was $19,000 (after the $100 floor and the 10%-of-AGI floor), and Anne’s insurance company reimbursed
her for $13,500. (Refer to text Section 7-3.)

Paid street paving assessment of $7,000 and added sidewalks for $8,000.

Installed an elevator for medical reasons. The total cost was $20,000, and Anne deducted $13,000 as medical expenses. (Refer
to text Section 10-1b.)

What is Anne’s realized gain?

Added by Eugenia W.