A taxpayer sells her principal residence of five years and qualifies to exclude her full $100,000 gain.The taxpayer must report this excluded gain on her tax return for the year of sale.

Question

Quizplus · Accepted Answer

The taxpayer does not need to report the excluded gain from the sale of a principal residence on her tax return, as it qualifies for the home sale exclusion under IRS rules.

A Taxpayer Sells Her Principal Residence of Five Years and Qualifies