Finance

A Nebraska property seller who receives $300,000 in proceeds from the sale of their primary residence (lived there 2+ years) may exclude from federal capital gains tax:

AAll gains regardless of amount
BUp to $250,000 (single) or $500,000 (married filing jointly) of gain under the Section 121 exclusion✓ Correct
CUp to $100,000 under a Nebraska-specific exemption
DNothing — all real estate gains are fully taxable

Explanation

Section 121 of the IRS Code allows homeowners who lived in the property as their primary residence for 2 of the last 5 years to exclude up to $250,000 (single) or $500,000 (married) of capital gain from federal taxation.

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