P, a single individual, purchased a new home on April 1, 20X1 for $375,000.On July 1, 20X2, P sold the property for $490,000, so she could take a new job 300 miles from her old home.The new job involved a promotion.How much gain must P recognize?

Question

Quizplus · Accepted Answer

P qualifies for the exclusion of gain from the sale of a principal residence under the Internal Revenue Code Section 121. Since the sale was due to a job change requiring relocation more than 50 miles away, P can exclude up to $250,000 of gain as a single individual, making the recognized gain $0.

P, a Single Individual, Purchased a New Home on April