Question

A homeowner sold her house and had net proceeds of $265,000. Her adjusted basis in the home was $231,000. She immediately bought another house for $301,000. What was her capital gain?

Answer 1

Answer:

$34,000

Explanation:

Capital gain is measured by the difference between the amount realized when an asset is sold and the basis of the asset.

In this case, the net proceeds from the sale were $265,000, while the basis for the house was $231,000:

capital gains = $265,000 - $231,000 = $34,000