On November 1,2013,Jamie (who is single) purchased and moved into her principal residence.In early 2014,Jamie was laid off from her job.On February 1,2014,Jamie sold the home at a $35,000 gain.She sold the home because she found a new job in a different state.How much of the gain,if any,may Jamie exclude from her gross income in 2014?

Question

Quizplus · Accepted Answer

Jamie may exclude up to $250,000 of gain ($500,000 if married filing jointly) from the sale of her principal residence if she owned and used it as her principal residence for at least 2 out of the 5 years preceding the sale. In this case, Jamie owned and used the home as her principal residence for at least 2 months in 2013 and therefore meets the ownership and use tests. She can exclude up to $31,250 of the gain (($35,000 gain / 15 months) x 2 months of qualifying use in 2013).

On November 1,2013,Jamie (Who Is Single) Purchased and Moved into Her