Dawn (single) purchased her home on July 1, 2005. On July 1, 2014 Dawn moved out of the home. She rented out the home until July 1, 2015 when she sold the home and realized a $230,000 gain (assume none of the gain was attributable to depreciation). What amount of the gain is Dawn allowed to exclude from her 2015 gross income?

Dawn (single) purchased her home on July 1, 2005. On July 1, 2014 Dawn moved out of the home. She rented out the home until July 1, 2015 when she sold the home and realized a $230,000 gain (assume none of the gain was attributable to depreciation). What amount of the gain is Dawn allowed to exclude from her 2015 gross income?

Dawn (single) purchased her home on July 1, 2005. On July 1, 2014 Dawn moved out of the home. She rented out the home until July 1, 2015 when she sold the home and realized a $230,000 gain (assume none of the gain was attributable to depreciation). What amount of the gain is Dawn allowed to exclude from her 2015 gross income?


A. $0

B. $207,000

C. $225,000

D. $230,000


Answer: D


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