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Steve Pratt, who is single, purchased a home in Riverside, California, for $$400,000.$ He moved into the home on February $1$ of year $1.$ He lived in the home as his primary residence until June $30$ of year $5,$ when he sold the home for $$700,000.$

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b$.$ Assume the original facts, except that the home is Steve's vacation home and he vacations there four months each year. Steve does not ever rent the home to others. What gain must Steve recognize on the home sale?