Question

Shantel owned and lived in a home for five years before marrying Daron. Shantel and Daron lived in the home for two years before selling it at a $700,000 gain. Shantel was the sole owner of the residence until it was sold. How much of the gain may Shantel and Daron exclude?

A. $0
B. $250,000
C. $500,000
D. $700,000

Answer 1

C)

Step-by-step explanation:

$500,000

Shantel meets the ownership test and both shantel and Daron meet the use test requirement, the couple may exclude $500,000 of gain.