A Taxpayer Must Purchase a New Personal Residence in Order

question 70

True/False

A taxpayer must purchase a new personal residence in order to exclude any gain from the sale of the old residence.

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Definitions:

Tax-exempt

Income or transactions that are free from tax at the federal, state, or local level.

No-load Mutual Fund

A mutual fund that does not charge any type of sales load or commission, allowing investors to put more of their money directly into investments.

Expense Ratio

The annual fee that mutual funds, index funds, and ETFs charge their shareholders, expressed as a percentage of the fund's average net assets.

NAV

NAV, or Net Asset Value, is the per-share value of a mutual fund or an exchange-traded fund (ETF), calculated by dividing the total value of all the securities in the portfolio, minus any liabilities, by the number of shares outstanding.