What is his taxable gain from the sale of this home

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Question - John and Mary were divorced in 2006. Pursuant to the divorce decree John received the home, and Mary was paid 1/2 of the equity in the home in the amount of $60,000. The divorce decree required John to pay Mary the $60,000 in the year the divorce became final (2006). Due to severe financial problems, John was unable to pay in the year 2006. Mary put a lien against the home for her $60,000. He finally paid her off in 2009. John sold the home this year. The basis of the home in 2006 was $200,000, and there were no capital improvements from 2006. He sold the home for $400,000. Disregarding any provisions related to the exclusion of the gain on the sale of a personal residence, what is his taxable gain from the sale of this home?

Reference no: EM132877542

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