Question

Adrianna is single. She purchased her first home for $190,000 in 2020. It served as her primary residence until she sold it on October 17, 2024 for $450,000. She paid a $26,300 commission as an expense of sale. During the time she owned her home, she did not use it for business or to produce rental income. What is the amount of her long-term gain that she can exclude from income on her return?
$233,700
$260,000
$286,300
$450,000

Answer 1

Amount realized = $450,000 − $26,300 commission = $423,700
Adjusted basis = $190,000 (no improvements or business use)
Gain = $423,700 − $190,000 = $233,700

As a single taxpayer she can exclude up to $250,000; her entire long‑term gain of $233,700 is excludable.

Answer: $233,700