Lewis, a single taxpayer, purchased a principal residence in 2005 for $240,000. He lived in the house from May 2005 until March 2014. He put the house up for sale in August 2014. However, due to a slow real estate market the house did not sell until February 2015.

In February 2015, he sold the house for $266,000. He paid real estate commissions to Century 21 of $7,000 to get the property sold.

How much gain must he recognize on his 2015 Federal tax return for this sale?

		$0
		$19,000
		$26,000
		$266,000