All tax calculations should be based on the 2020 Tax Rate Schedules. Figures should be rounded to the nearest dollar. Percentages should be rounded to the nearest whole percentage (e.g., 32% instead of 32.2%)

Sale of principal residence. Nabuwami and Idela, who are married and file jointly, bought a house on January 1, 2014, for $500,000. They used it as a principal residence until January 1, 2018. After that, they used it as a vacation home until they eventually sold it on January 1, 2020, for $880,000. (They did not take any depreciation deductions during the time it was a vacation home.) How much capital gain do they have to report on the sale?