Exam Spring 2016 student copy

Tony (single) purchased a home on January 1, 2011 for $400,000. Tony lived in the home as his primary residence until January 1, 2013 when he began using the home as a vacation home. He used the home as a vacation home until January 1 2014 (he used a different home as his primary residence from January 1, 2013 to January 1, 2014). On January 1, 2014, Tony moved back into the home and used it as his primary residence until January 1, 2015 when he sold the home for $500,000. What amount of the $100,000 gain Tony realized on the sale must he recognize for tax purposes in 2015?