On February 1,Alan,a single individual,purchased his first personal residence for $400,000.On July 1,Alan sold this residence for $460,000 because he wanted to rent a newly constructed condominium.Consequently,Alan occupied the home for only 150 days.How much gain must Alan recognize?

Question

Quizplus · Accepted Answer

Alan must recognize the entire gain of $60,000 because he did not meet the ownership and use test of living in the home for at least two years out of the five years preceding the sale, which is required to exclude up to $250,000 of gain for a single individual.

On February 1,Alan,a Single Individual,purchased His First Personal Residence for $400,000.On