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

When an individual is married, they may exclude up to $500,000 of gain on the sale of a primary residence as long as they owned and lived in the home for at least two of the five years preceding the sale. In this case, Shantel meets both of these requirements and therefore she and Daron may exclude up to $500,000 of the gain.

Shantel Owned and Lived in a Home for Five Years