Which of the Following Statements Concerning the Exclusion Available Under

question 14

Multiple Choice

Which of the following statements concerning the exclusion available under Section 121 for the sale of a personal residence is correct?

• A)This provision allows 50% of the gain from sale of any residence to be excluded from income.
• B)A vacation home used as a residence for at least five months of the year will qualify for this exclusion.
• C)It is possible for taxpayers to sell their home and qualify for this exclusion every two years.
• D)The gain on the sale can be deferred and rolled over into another residence instead of electing the exclusion.

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Definitions:

Nonshared Environmental

Influences that result in differences among siblings, including experiences outside the family that are not shared by other siblings.

Family Vacation

A period of leisure and travel with family members away from the usual residence, intended for relaxation and enjoyment.

Familial Status

Refers to an individual's position or role within a family, including aspects such as being a parent, child, or sibling.

Parent-Child Relationship

The dynamic and complex bond between a parent and their child, encompassing aspects of care, love, guidance, and support.