Amount Realized

The amount realized is the selling price minus selling expenses.

Selling expenses include commissions, advertising fees, legal fees, and loan charges paid by the seller, such as points.

Selling price - Selling expenses = Amount realized
$250,000 - $4,000 = $246,000

If the selling price or amount realized is $250,000 or less ($500,000 or less if Married Filing Jointly), there is generally no need to figure the gain if the ownership and use tests are met.