Michael (single) purchased his home on July 1, 2007. On July 1, 2015 he moved out of the home. He rented out the home until July 1, 2016 when he moved back into the home. On July 1, 2017 he sold the home and realized a $300,000 gain. What amount of the gain is Michael allowed to exclude from his 2017 gross income?

Question

Quizplus · Accepted Answer

Michael can exclude up to $250,000 of the gain from the sale of his home because he meets the ownership and use tests, having lived in the home for at least 2 of the 5 years preceding the sale.

Michael (Single) Purchased His Home on July 1, 2007