Which of the Following Statements Is False with Regard to the Ownership

question 49

Multiple Choice

Which of the following statements is false with regard to the ownership and use tests under Sec.121?

• A)The taxpayer must be occupying the residence at the time of the sale in order for Sec.121 to apply.
• B)If a principal residence is sold before satisfying the ownership and use tests,part of the gain may be excluded if the sale is due to a change in employment,health,or unforeseen circumstances.
• C)For purposes of the two-year ownership rule,a taxpayer's period of ownership includes the period during which the taxpayer's deceased spouse owned the residence.
• D)When a taxpayer receives a residence from a spouse or an ex-spouse incident to a divorce,the taxpayer's period of owning the property includes the time the residence was owned by the spouse or ex-spouse.

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Definitions:

Whisk Ferns

Fern relatives lacking true roots and leaves; characterized by dichotomous branching.

Life Cycle

the series of stages through which an organism passes from the start of its life until it produces offspring and completes the cycle.

Whisk Fern

A type of vascular plant belonging to the genus Psilotum, known for its simple, whisk-like appearance without true leaves or roots.

Club Moss

A type of non-flowering plant belonging to the Lycopodiophyta division, known for its moss-like appearance and reproductive via spores.