Murray (age 68, single) sold his home owned for 35 years so that he could relocate to a place that is closer to where his grandchildren live. He realized a $400,000 capital gain on the home. Murray's tax liability on the capital gain is computed on:

Question

Quizplus · Accepted Answer

Murray can exclude up to $250,000 of the capital gain from the sale of his primary residence under the IRS home sale exclusion rule. Therefore, his tax liability is computed on the remaining $150,000 of the gain.

Murray (Age 68, Single) Sold His Home Owned for 35