Real estate question?
A married couple has occupied a house as their principal personal residence for 3 years. If they sell their home for a profit, the maximum amount of profit (capital gain) that is exempt from federal taxes is:
A. $0
B. $125,000
C. $250,000
D. $500,000
Answers & Comments
Verified answer
Were the three years within the last five years?
Have they sold another home within the last (I think two) years and used this same exemption?
We are assuming other things also.
But with all those assumptions the answer would be D $500,000.