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:

Aboriginal People

Indigenous people native to a land or country, especially those with a long history and cultural heritage predating colonialism.

Domination

The exercise of power over a group of people to direct them to comply with specific commands.

Work Environment

The physical and psychological conditions under which employees operate, including factors such as safety, culture, and interpersonal relationships.

Authority

The power or right to give orders, make decisions, and enforce obedience, often within a specific domain or institution.