Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Capital Gain or Loss Workout

Skills Workout

Certification Warm Up: Question 7 of 7

Emily sold her main home in June of the tax year. She recognized a gain from the sale. She married Jamie later that same year. Emily meets the ownership and use tests, but Jamie does not. Which of the following is true?

They do not qualify to claim the gain as an exclusion
Emily can exclude up to $250,000 of gain on a separate or joint return
Emily and Jamie can exclude up to $500,000 gain if they file a joint return
None of the above