This home would be considered your primary home if you have owned it for at least 2 years and if you have also lived in the home for at least 2 of the last 5 years. So if your uncle gave you this house at least 2 years ago and you have lived in the house since that time, then this would be considered to be your primary home. That being the case, you can exclude $250,000 from any gain you have from the sale, or $500,000 if you are married filing a joint return.
Since the home was a gift, your basis in the home is the same as your uncle's basis, which is $36,000. If you now sell the home for $420,000, you have a gain of $384,000. If you file your taxes as single you can exclude $250,000 from that gain and would owe tax on the excess gain of $134,000 at the long term capital gains tax rate of 15%.
If you are married and filing a joint return, then you can exclude $500,000 from the gain, which would leave you with no taxable gain at all and no taxes would be due.
If your friend is not a US citizen and does not live in this country, but he is selling a house in this country which someone gave to him, then he would owe tax on the entire amount of the gain he had from the sale. If he is not a US citizen but is a permanent resident of this country, then the same rules apply as the rules which apply for you or any US citizen.
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