Heidi (Single)purchased a Home on January 1, 2010, for $400,000

Essay

Heidi (single)purchased a home on January 1, 2010, for $400,000. She lived in the home as her primary residence until January 1, 2018, when she began using the home as a vacation home. She used the home as a vacation home until January 1, 2019. (She used a different home as her primary residence from January 1, 2018, to January 1, 2019.)On January 1, 2019, Heidi moved back into the home and used it as her primary residence until January 1, 2020, when she sold the home for $700,000. What amount of the $300,000 gain Heidi realized on the sale must she recognize for tax purposes in 2020?