All of the Following Statements Are True with Regard to Personal

question 1080

Multiple Choice

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

• A) Houseboats, house trailers, and condominium apartments may qualify as a principal residence.
• B) Temporarily renting property that was formerly the taxpayer's principal residence does not automatically preclude the use of Sec. 121.
• C) To qualify for favorable tax treatment under Sec. 121, the residence must be either the taxpayer's principal residence or a secondary residence.
• D) 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.

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Definitions:

Issue Price

The price at which new shares or bonds are offered to the public by a company or government for the first time.

Yield Per Annum

The annual return on an investment, expressed as a percentage of the total investment.

Retirement Income

Income that an individual receives after retiring from active employment, which can come from pensions, savings, investments, and government benefits.

After Tax

Referring to the net amount remaining after income tax has been deducted from gross income.