Ben Benson, single, sold his home that he had owned for 20 years for $695,000. He purchased it for $140,000 and made $45,000 of capital improvements on the home during his time of ownership. How much gain is excluded?

Question

Quizplus · Accepted Answer

Ben has a realized gain of $510,000 ($695,000 less $185,000), but as a single individual, he can only exclude
$250,000 and he must recognize $260,000.

Ben Benson, Single, Sold His Home That He Had Owned