How would the following situation be taxed for fiscal year 2015 and 2016?

On October 1, 2012, the Wrights bought land for $25,000, and built a new house as their personal residence for $100,000. They paid cash. It is located at 9792 Rocking Horse Ridge, Mono, CA 93541. They sold it on June 30, 2015 for $500,000, and incurred selling costs of $3,000 and commissions of $26,000. Property taxes of $1,100 were paid in 2015.