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Sale of principal residence. Zelig files his tax returns as head-of-household. For many years, he had lived in an apartment that he rented. He purchased
Sale of principal residence. Zelig files his tax returns as head-of-household. For many years, he had lived in an apartment that he rented. He purchased a house on August 1 of last year and lived in it as his principal residence. However, because of a sudden and significant increase in gang violence in the neighborhood, Zelig had to sell the house on August 1 of this year and move back into an apartment. He bought the house for $410,000 and sold it for $790,000. How much capital gain does Zelig have to report on this sale?
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