Multiple Choice $4-21$

Sale of a Personal Residence $($LO $4\mathrm{.}6)$

Peruth, a single taxpayer, purchased a house $18$ months ago for $$350,000.$ If Peruth

sells their house due to unforeseen circumstances for $$550,000$ after living in it for a

full $18$ months, what is their taxable gain?

a$.$ $$200,000$

b$.$ $$12,500$

c$.$ $$50,000$

d$.$ $$0$