A taxpayer may be required to include in gross income gain the taxpayer realizes when she sells her principal residence.

Question

Quizplus · Accepted Answer

According to the IRS, generally, if you sell your main home at a gain, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases). However, if you do not meet the ownership and use tests, you may have to include part of the gain from the sale of your home in your taxable income.

A Taxpayer May Be Required to Include in Gross Income