Id like to sell the house and move into a townhouse a mile or so from the grandkids. I watch them after school so this would be convenient, plus, Id love to escape the maintenance of a house. Jay and I bought this house (jointly owned) 20 years ago, so this is a big change for me. Can you give me an idea of the capital gain?

Heres what I can tell you let me know if you need any other information: We bought the house in 2003 for $226,000. Weve done repairs, but no additions, etc. Our mortgage was originally $150,000, 30 year term and the rate was 5.25%. We refinanced 3 years ago, for $90,000 (15 year term and a rate of 3.5%). The current balance is $75,564. The last time I thought about the house value was while settling Jays estate. Lily (my daughter) filed the estate paperwork, and the house was valued at $600,000. I spoke with a realtor this week who did a market analysis. She thinks it will sell for $720,000. Her commission is 6% of the selling price.

Based on the details Mira shared with you regarding the potential house sale, please identify the capital gain that would be recognized if she sells the house in one month. Please show your calculations and explain your answer.