The Taxpayer Must Be Occupying the Residence at the Time

question 20

True/False

The taxpayer must be occupying the residence at the time of the sale in order for Sec.121 to apply.

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Definitions:

Long-term Capital Gains

Profits from the sale of an asset held for more than a year, generally taxed at lower rates than ordinary income.

Ordinary Income

Income earned from providing services or the sale of goods, typically subject to standard tax rates, as opposed to income classified as capital gains.

Equipment Distribution

The process of supplying equipment to various departments or locations within an organization or among individuals.

Cash Distributions

Payments made in cash by a corporation to its shareholders, typically from earnings or profits.