Simonne, a single taxpayer, bought her home in Orlando 25 years ago for $55,000. She has lived continuously in the home since she purchased it. In the current year, she sells her home for $405,000. What is Simonne's taxable gain on the sale? a. $0b. $90,000c. $100,000d. $350,000

C) $100,000

Explanation:

Since Simmone is a single taxpayer, she can exclude up to $250,000 from her home's basis when calculating her capital gains from selling the house. She obviously met the requirement of living in the house for two years before selling, so her taxable gain = $405,000 (selling price) - $250,000 (single taxpayer exclusion) - $55,000 (house basis) = $100,000.

If she was married, her exclusion would be $500,000.