Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $459,500. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of year 5, when they sold the home for $730,000. (Leave no answer blank. Enter zero if applicable.)

Problem 14-39 Part a (Algo)

a. What amount of gain on the sale of the home are the Pratts required to include in taxable income?