On March 312016 Jonathan and Michelle sold their personal residence for $529000 The sale was conditional on them replacing the driveway at a cost of $6400 They also repainted the house at a cost
On March 31,2016 Jonathan and Michelle sold their personal residence for $529,000. The sale was conditional on them replacing the driveway at a cost of $6,400. They also repainted the house at a cost of $2,800. The real estate commission on the sale was $26,130. Michelle had a home office in the house since the day it was purchased on 1/1/2008 for $226,000 and immediately added the office at a cost of $19,800. The total square footage of the house was 3,250 feet while the office was 225 square feet. The office was exclusively used for Michelle's business purposes. Michelle stopped using the office on January 1st,2016 to get the house ready for sale. Jonathan and Michelle lived in the house since purchase date.
They immediately bought a 35 foot Kane travel home for $187,000 thinking that they would do some traveling and could live in it as well, but the high price of operating the vehicle forced them to re-evaluate the wisdom of owning a travel home. They sold it to an unrelated party for $142,000 on June 2,2016 and bought another house for $462,000. Michelle decided that he no longer needed an office home in the new house.
What is Michelle and Jonathon's realized gain or loss?