A single person selling their owner-occupied home after 2 or more years is exempt from capital gains tax on the first how much of the profit?

The correct amount that a single person can exclude from capital gains tax on the sale of their owner-occupied home after living in it for at least two years is $250,000. This exclusion applies to the gain from the sale of a primary residence and is set by the IRS under specific conditions.

To qualify for this exclusion, the seller must have owned the home for at least two years out of the last five years prior to the sale. Additionally, the property must have been their primary residence during that time. This tax benefit is designed to help homeowners reduce the financial burden when selling their homes, particularly given the appreciation in property values over time.

For married couples filing jointly, the exclusion is increased to $500,000, but that amount applies specifically to couples rather than individuals. The other options do not reflect the correct exclusion limits established by the IRS for individuals selling their primary residence. Thus, the $250,000 figure is essential for individuals who may be looking to maximize their proceeds from the sale while minimizing tax liabilities.