Jared and Melissa are married. They have owned their primary residence for $10$ years and have lived in it the entire time. They paid $$350,000$ for the house and land and it is now worth $$900,000.$ Due to the property's prime location in Stephenville, the City of Stephenville has decided to "take" the property and turn it into a public park and venue. The City sends Jared and Melissa a letter offering to buy the property for $$800,000.$ Jared and Melissa reject the offer and the case goes to trial where a judge determines the value to be $$950,000$ and orders the City to pay that amount for the property it claimed using eminent domain. After Jared and Melissa receive the $$950,000,$ they decide not to buy a new house and instead they live in their camper and travel around the country. Do Jared and Melissa have to pay tax on the money they received?

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