Question

Homeowner Elizabeth sold her house and had net proceeds of $266,000. Her adjusted basis in the home was $235,000. She immediately bought another house for $198,000. What was Elizabeth's capital gain?

Answer 1

Answer:

$31,000

Explanation:

Given:

Net Proceeds of old house = $266,000

Adjusted basis amount = $235,000

Cost of new house = $198,000

Computation of Capital Gain:

Capital Gain = Selling Price of particular capital - Adjusted basis amount of capital

Capital gain = $266,000 - $235,000 = $31,000

Therefore, capital gain of Elizabeth from sold her home is $31,000