What is the gain or loss from the sale of a home priced at $320,000 with $16,000 in commissions and $2,000 in selling expenses?

To determine the gain or loss from the sale of the home, it’s essential to deduct all selling expenses from the sale price. The sale price is $320,000, and there are commissions and selling expenses totaling $18,000 ($16,000 in commissions plus $2,000 in selling expenses).

First, calculate the net proceeds from the sale:

[

\text{Net Proceeds} = \text{Sale Price} - \text{Selling Expenses}

]

[

\text{Net Proceeds} = 320,000 - 18,000 = 302,000

]

To find the gain or loss, you would need to compare these net proceeds with the basis (original purchase price plus any improvements made, if applicable). However, without that basis stated in the problem, it’s typically assumed that for the purpose of this question, calculations are done based on only provided figures.

If we assume a previous purchase price of $280,000 for instance, then:

[

\text{Gain} = \text{Net Proceeds} - \text{Purchase Price}

]

[

\text{Gain} = 302,000 - 280,000 = 22,000