Katrina,age 58,rented (As a Tenant)the House That Was Her Principal

Essay

Katrina,age 58,rented (as a tenant)the house that was her principal residence from January 1,2010 through December 31,2011.She purchased the house on January 1,2012,for $150,000 and continued to occupy it through June 30,2013.She leased it to a tenant from July 1,2013,through December 31,2014.On January 1,2015,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.