James sold the family home in Idabel (1021 S. Main, Idabel, OK 73046), before he moved for $595,000. James and Jean had paid $220,000 for the home in 1998 when they purchased it. They had made no capital improvements to the home, James then purchased a new home in Edmond for $475,000, closing on September 16, 2018. James and Adam rented the home prior to closing on it. They made rental payments for 2 months totaling $2,400.
What is the taxable income and what is the deduction of taxes? This is for the 2018 tax year.