The following information pertains to the sale of Al and Beth Oran’s principal residence:
|
Date of sale |
February 2007 |
|
Date of purchase |
October 1991 |
|
Net sales price |
$760,000 |
|
Adjusted basis |
$170,000 |
Al and Beth owned their home jointly and had occupied it as their principal residence since acquiring the home in 1991. In June 2007, the Orans bought a condo for $190,000 to be used as their principal residence. What amount of gain must the Orans recognize on their 2007 joint return from the sale of their residence?
- $ 90,000
- $150,000
- $340,000
- $400,000