Kellye purchased her home in 2012 for $140,000. After living in it for five years, she sold it in 2017 for $170,000, its market value. What is the tax treatment of the sale of Kellye’s home?
a. A $30,000 gain is recognized but not reported.
b. A $30,000 gain is recognized and reported.
c. A $30,000 gain is carried forward.
d. The transaction is not reported.