A 55-year-old man owned and resided in a house for 9 years. The house was sold. After deducting the broker's commission he still showed a profit of $10,000. Electing to take the special exemption, for federal income tax purposes, his taxable income would be:
a. nothing
b. 20% as it is a long-term capital gain
c. 40% as it is a long-term capital gain
d. all taxable as a short-term gain
