Ethan (single)purchased his home on July 1,2008.On July 1,2015 he moved out of the home.He rented the home until July 1,2017 when he moved back into the home.On July 1,2018 he sold the home and realized a $210,000 gain.What amount of the gain is Ethan allowed to exclude from his 2018 gross income?

Question

Quizplus · Accepted Answer

Ethan is allowed to exclude $250,000 of gain from the sale of his home because he owned and used it as his main home for more than 2 of the 5 years before the sale. However, because he rented out the home for 2 years, he is only allowed to exclude $168,000 of the gain.

Ethan (Single)purchased His Home on July 1,2008