M and D have used their home as their principal residence for the last 20 years. They have not sold a home during this time period. M has owned the house in his name only for all of this time period. During the current year they sold the home for $350,000 gain. Which of the following is most accurate?
a. $350,000 of gain is recognized because they do not both meet the ownership test.
b. No gain is recognized because the gain is less than the $500,000 exclusion.
c. $100,000 of gain is recognized because only Mark meets the ownership test.
d. $50,000 of the gain is recognized because only 60% of the exclusion is available.