Real Estate Principles 11th Edition by Charles Jacobus

Exercise 4

The Smiths bought a house in 1993 for $210,000, including closing costs. Five years later they made improvements costing $12,000 and five years after that more improvements that cost $15,000. Today they sell the house; the sales price is $268,000, and commissions and closing costs total $15,000. For income tax purposes, what is their gain?