E sold her home for 340000 She purchased the home for 350000

E sold her home for $340,000. She purchased the home for $350,000 and made capital improvements to the home costing $50,000. What is the amount of the loss to be reported in net income for tax purposes?

Solution

Amount of loss to be reported in net income=(Cost of acquisition+cost of capital improvements)-Sale value

=($350000+50000)-$340000=$60000