All of the Following Statements Are True with Regard to Personal

question 84

Multiple Choice

All of the following statements are true with regard to personal residences except:

• A)Temporarily renting property that was formerly the taxpayer's principal residence does not automatically preclude the use of Sec.121.
• B)To qualify for favorable tax treatment under Sec.121,the residence must be either the taxpayer's principal residence or a secondary residence.
• C)In the case of married taxpayers,an individual may claim the exclusion even if the individual's spouse used the exclusion within the past two years.
• D)Houseboats,house trailers,and condominium apartments may qualify as a principal residence.

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Definitions:

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or to the order of a specified person.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize practices across states.

Special Kind

A term that refers to a unique or particular type or category of something, often used to specify or differentiate items or circumstances.

Depositary Bank

A financial institution that holds and manages the deposits of securities for investors, facilitating the trading of these securities.