In 2022 , Ian and Bridgette sell their home for $1,400,000. They purchased the home 5 years ago and it was their primary residence since the purchase. At the time of the sale, their cost basis in the home was $800,000 and they will file their 2022 tax return as married filing joint. Which of the following statements is correct? The realized gain on the sale is $600,000 of which $250,000 is excluded from taxable income and $350,000 will be included in taxable income as a capital gain. The realized and recognized gain on the sale is $600,00 and will be reported as capital gain income. The realized gain on the sale is $600,000 of which $500,000 is excluded from taxable income and $100,000 will be included in taxable income as a capital gain. The realized and recognized gain on the sale is $600,000 and will be reported as ordinary income. In 2022 , Ian and Bridgette sell their home for $1,400,000. They purchased the home 5 years ago and it was their primary residence since the purchase. At the time of the sale, their cost basis in the home was $800,000 and they will file their 2022 tax return as married filing joint. Which of the following statements is correct? The realized gain on the sale is $600,000 of which $250,000 is excluded from taxable income and $350,000 will be included in taxable income as a capital gain. The realized and recognized gain on the sale is $600,00 and will be reported as capital gain income. The realized gain on the sale is $600,000 of which $500,000 is excluded from taxable income and $100,000 will be included in taxable income as a capital gain. The realized and recognized gain on the sale is $600,000 and will be reported as ordinary income