Larry owned and lived in a home for five years before marrying Darlene. Larry and Darlene lived in the home for one year before selling it at a $600,000 gain. Larry was the sole owner of the residence until it was sold. How much of the gain may Larry and Darlene exclude?

Question

Quizplus · Accepted Answer

Because Darlene didn't meet the two year use test, the couple qualifies for the $250,000 exclusion not the $500,000 exclusion.

Larry Owned and Lived in a Home for Five Years