Sarah is single. She rents an apartment in Boston where she works. She also owns a home in Cape Cod in which she only spends time there on most weekends and a two week vacation during the summer. She bought the Cape Cod home for $500,000 in 2015 and has incurred no capital expenditures. She plans to sell it for about $800,000 net of selling costs this year. She asks you as her advisor whether she can exclude some or all of the gain. How would you respond to her? Would your answer change if she worked near her Cape Code home during the last 6 years and resided there for most of those years? If so, please explain the impact.