Sale of Home by Surviving Spouse

April’s husband Jay died 5 years ago when their home was worth $600,000. Due to the soft real estate market, April kept the house until the housing market recovered. She finally sold the home this year for $950,000. What is the amount of April’s taxable gain or loss if she bought the home jointly with Jay 20 years ago for $200,000? Assume April lives in a common law state.

  1. $0
  2. $100,000
  3. $300,000
  4. $350,000