Katrina, Age 58, Rented (As a Tenant) the House That

Essay

Katrina, age 58, rented (as a tenant) the house that was her principal residence from January 1, 2019 through December 31, 2020.She purchased the house on January 1, 2021, for $150,000 and continued to occupy it through June 30, 2022.She leased it to a tenant from July 1, 2022, through December 31, 2023.On January 1, 2023, she sells the house for $350,000.She incurs a realtor's commission of $20,000.Calculate her recognized gain if her objective is to minimize the recognition of gain and she does not intend to acquire another residence.