Which of the Following Statements Is False with Regard to the Ownership

question 2093

Multiple Choice

Which of the following statements is false with regard to the ownership and use tests under Sec. 121?

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

Self-Control

The capacity to manage personal feelings, ideas, and actions when confronted with desires and sudden urges.

Neglectful

Failing to care for or give proper attention to someone or something, often resulting in harm or lack of development.

Indulgent

Characterized by yielding to one's desires or whims easily, often excessively or beyond what is considered healthy or appropriate.

Indulgent

Characterized by being overly generous or lenient, often to the point of enabling negative behaviors.