Question

Soothes originally sold her home for $92,000. At that time, her adjusted basis in the home was $95,000. Five years later, she repossessed the home when the balance of the note was $87,000. She resold it within one year for $100,000. Original sale expenses were $2,900. She incurred $1,100 for improvement prior to the resale. What is coroner's recomputed gain?

Answer 1

Solution

Given that sold his Home for $ 92,000

Adjusted cost of Home $ 95,000

Particulars	Amount
Initial Sale Price of Home	$ 92,000
Adjusted cost of Home	$ 95,000
Original Sale expenses	$ 2,900
Loss From First time sale	$ (5,900)
Resold Sale Price of Home	$ 100,000
Repossessed cost of Home	$ 87,000
Improvement cost prior to resale	$ 1,100
Gain From Resale of Home	$ 11,900 (100,000-87,000-1,100)
Loss from First time sale	$ (5,900)
Total Gain from resale of Home after set off from pervious sale	$ 6,000

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