In Order for the Gain on the Sale of a Personal

question 51

True/False

In order for the gain on the sale of a personal residence to be excluded under Section 121,a replacement residence must be purchased within two years.

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Definitions:

Expenses

Amounts used to generate revenue; assets used up or services consumed in the process of generating revenues.

Net Discounted Cash Flow

The value of all future cash flows of a project or investment after being discounted to the present value, reflecting both time and risk.

Cash Flowing

The movement of money in and out of a business, representing its operational liquidity.

Expenses

Costs incurred during the operation of a business that are necessary for generating revenue, such as rent, salaries, utilities, and materials.