Katrina,age 58,rented (as a tenant)the house that was her principal residence from January 1,2016 through December 31,2017.She purchased the house on January 1,2018,for $150,000 and continued to occupy it through June 30,2019.She leased it to a tenant from July 1,2019,through December 31,2020.On January 1,2020,she sells the house for $350,000.She incurs a realtor's commission of $20,000.Calculate her recognized gain if her objective is to minimize the recognition of gain and she does not intend to acquire another residence.

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The Answer of Katrina,age 58,rented (as a tenant)the house that was her principal residence from January 1,2016 through December 31,2017.She purchased the house on January 1,2018,for $150,000 and continued to occupy it through June 30,2019.She leased it to a tenant from July 1,2019,through December 31,2020.On January 1,2020,she sells the house for $350,000.She incurs a realtor's commission of $20,000.Calculate her recognized gain if her objective is to minimize the recognition of gain and she does not intend to acquire another residence.

Katrina,age 58,rented (As a Tenant)the House That Was Her Principal