Mark and Lisa are married filing jointly. They purchased the…
Mark and Lisa are married filing jointly. They purchased their primary residence for $400,000 and lived in the home for 3 full years before selling it for $850,000. They meet both the ownership and use tests, and neither spouse has claimed a Section 121 exclusion in the past two years. Ignoring selling expenses, how much of the gain, if any, must Mark and Lisa recognize?
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