A taxpayer may be required to include in gross income gain the taxpayer realizes when she sells her principal residence.

Question

Quizplus · Accepted Answer

Generally, a taxpayer must include in gross income any gain realized from the sale or exchange of property, including a principal residence. However, there are certain exceptions and exclusions that may apply, such as the exclusion for up to $250,000 ($500,000 for married couples filing jointly) of gain on the sale of a principal residence if certain requirements are met.

A Taxpayer May Be Required to Include in Gross Income