Answer:
$45,000
Explanation:
Matt sold the house for $2,200,000 and sales closing cost of $195,000.
The amount realized from the sale will be,
= $2,200,000.00 - $195,000.00
=$ 2, 005, 000.00
He had bought the house for $1,955,000.00 and spent $5000 on improvements.
Total amount ( new adjusted basis)
= $1, 955,000.00 + $5,000 .00
= $1, 960,000.00
The capital gain for tax purposes will be, selling price - buying cost
=$ 2, 005, 000.00 - $1, 960,000.00
=$45,000.00
Assuming no exclusion, capital gain for taxation purposes will be $45,000.00
