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Walter a single taxpayer sells a house that owns on june 1, 2016 for 500,000. He purchased the house on jan 1 2008, for 200000 and used the house ashis personal residence until may 21, 2015. He allowed a friend to live in the house from une 1, 2015 til may 31, 2016. unfortunately a spat with the friend ended the rent free agreement. The huse had an adjusted basis at the date of sale 200000. Walter used the sales proceeds to purchase a new house at a cost of 450000.
A. How much gain is recognized by walter on the sale of the house?
Rcognized Gain = ?
B. What is the basis of the new house purchased by walter?
Basis of new home =?
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