what is Taylor’s recognized gain on the sale of the second residence?
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 55P
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Taylor has owned and occupied her personal residence (adjusted basis of $190,000) for four years. In April 2020, she sells the residence for $300,000 (selling expenses are $20,000). On the same day as the sale, Taylor purchases another house for $350,000. After living in the new house for 10 months, Taylor has a job transfer to another state. She sells the second house after this 10 month period for $483,000 (selling expenses are $18,000).
Using the facts in #16 above, what is Taylor’s recognized gain on the sale of the second residence?
Group of answer choices
$28,833
$115,000
$10,833
$0
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