Ryan, age fifty-seven, is single with no dependents. In January 2015, Ryan's principal residence was sold for the net amount of $400,000 after all selling expenses. Ryan bought the house in 2002 and occupied it until sold. On the date of sale, the houses had a basis of $180,000. Ryan does not intend to buy another residence. What is the maximum exclusion of gain on sale of the residence that may be claimed in Ryan's 2015 income tax return?
a. $250,000
b. $220,000
c. $125,000
d. $0
Answer: B
Tax
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- Income in respect of a cash-basis decedent
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