Mr. and Mrs. Frazier recognized a $723,000 gain on sale of a home that had been their principal residence for 29 years. They moved into a rented condominium in Naples, Florida. What are the tax consequences of the sale to the Fraziers?

Question

Quizplus · Accepted Answer

The Fraziers can exclude up to $500,000 of the gain from their income because they are married and the home was their principal residence for at least 2 of the last 5 years. Therefore, they would recognize a $223,000 long-term capital gain ($723,000 gain - $500,000 exclusion).

Mr and Mrs