Which of the Following Is a Rule Related to the Exclusion

question 20

Multiple Choice

Which of the following is a rule related to the exclusion of gain on the sale of a personal residence?

• A)In general,to exclude the gain from the sale of a personal residence,the home must be used as a personal residence within the last 3 years.
• B)The gain exclusion is either $250,000 ($500,000 if married)or nothing.
• C)If the taxpayer has not used and owned the house for the designated time,then the taxpayer may still qualify if he/she had unforeseen circumstances.Unforeseen circumstances include divorce,multiple births,and inability to pay the mortgage due to a change in employment.
• D)After May 6,1997,a taxpayer may exclude $125,000 of the gain if they are over the age of 55.

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Definitions:

Subsystems

Smaller, component systems within a larger system, each having its own function but contributing to the operation and success of the whole.

Free-Agent Economy

An economy in which people change jobs more often, and many work on independent contracts with a shifting mix of employers.

Jobs

Positions or roles within organizations or societies that involve performing specific duties and tasks in exchange for compensation, such as salary or wages.

Goal Attainment

The process of defining, pursuing, and achieving objectives, often used as a measure of success or progress within an organization or individual's efforts.