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:

Gestalt Principle

A theory in psychology that proposes the human brain sees objects as whole forms rather than as a collection of parts, emphasizing the context and patterns of perception.

Columns

Structural elements in architecture that serve as support; also refers to vertical arrangements of information or data in tables or spreadsheets.

Sound Waves

Vibrations that travel through the air or another medium, which can be heard when they reach a person's or animal's ear.

Nerve Impulses

Electrical signals that travel along neurons, transmitting information throughout the body.