Michael (single) purchased his home on July 1, 2012. Michael lived in the home as Michael's principal residence until July 1, 2020, when Michael moved out of the home, and rented it out until July 1, 2021, when Michael moved back into the home. On July 1, 2022, Michael sold the home and realized a $315,000 gain. What amount of the gain is Michael allowed to exclude from 2022 gross income?

$0

$225,000

$250,000

$315,000