Michael (single) purchased his home on July 1,2003.On July 1,2011 he moved out of the home.He rented out the home until July 1,2012 when he moved back into the home.On July 1,2013 he sold the home and realized a $300,000 gain.What amount of the gain is Michael allowed to exclude from his 2013 gross income?

Question

Quizplus · Accepted Answer

Michael lived in the home for at least two out of the past five years and the gain on the sale of his home is less than $250,000 for a single taxpayer, so he is allowed to exclude the entire $300,000 gain from his gross income. Therefore, the answer is C.

Michael (Single) Purchased His Home on July 1,2003