Shantel owned and lived in a home for five years before marrying Daron. Shantel and Daron lived in the home for two years before selling it at a $700,000 gain. Shantel was the sole owner of the residence until it was sold. How much of the gain may Shantel and Daron exclude?

Question

Quizplus · Accepted Answer

Because Shantel meets the ownership test and both Shantel and Daron meet the use test requirement, the couple may exclude $500,000 of gain.

Shantel Owned and Lived in a Home for Five Years